You must have been hiding under a rock if you did not hear the Reserve Bank’s announcement recently about interest rates. 

RBA governor Michele Bullock announced an increase in the cash rate from 3.60% up to 3.85% - an increase of .25% and the first rate hike in over two years, following a series of cuts in 2025. 

Happy New Year from the RBA to every mortgage holder in Australia!

This decision was primarily driven by a "material" pick-up in inflation during the second half of 2025, which indicated that the economy was running "hotter" than previously estimated.

The real debate was around the main driver behind the inflationary numbers - was it the private or government sector that contributed to the increase? 

While the debate raged in the media, there is unfortunately nothing we can do to reverse last Tuesday’s announcement.

All is not lost, however. 

You do have a few things in your control that might help manage the increase and reduce either your repayments or the term of your mortgage.

If you don’t ask, you don’t get. 

Contact your bank or your mortgage broker and ask them for a home loan health check or an interest rate review. You might be surprised by the outcome.

If your bank doesn’t come to the party, contact a mortgage broker to test your current interest rate or home loan product against what is available from other lenders in the market.

You could also consider making additional repayments or leveraging your redraw or offset account to reduce the term of your mortgage.

The team at Astute Brent Rollings is always here to help. Feel free to reach out to us if you need help to talk through your options to make sure you are getting the best outcome in the market.

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