Australia's latest inflation figures have raised fresh concerns for mortgage holders, with growing expectations that the Reserve Bank of Australia (RBA) will increase interest rates again at its Melbourne Cup Day meeting on Tuesday, 3 November.

Following the release of higher-than-expected inflation data on Wednesday 28 October, all four major banks, Commonwealth Bank, Westpac, NAB and ANZ are now predicting a further 0.25% increase to the official cash rate, taking it from 4.60% to 4.85%.

If these predictions prove correct, it will mark the fifth interest rate increase of 2026, placing additional pressure on household budgets and mortgage repayments.

So, what's behind the latest inflation figures, how likely is another rate rise, and what could it mean for homeowners and property buyers?

Why Are Interest Rates Expected to Rise Again?

The latest figures from the Australian Bureau of Statistics show annual inflation increased to 4.3% in September, up from 4.0% in August.

Underlying inflation also remains elevated at 3.6%, above the RBA's target range of 2–3%.

These figures suggest inflation is proving more persistent than hoped, increasing pressure on the RBA to consider another interest rate rise.

While higher interest rates are designed to help bring inflation under control, they also increase borrowing costs for households and businesses.

What Are the Big Four Banks Predicting?

Following the latest inflation announcement, all four major Australian banks are now forecasting another interest rate increase at next week's RBA meeting. Both Commonwealth Bank and NAB have revised their forecasts following the latest inflation figures, joining ANZ and Westpac in predicting the official cash rate will reach 4.85%.

Although the RBA makes its decisions independently, the agreement among the major banks suggests another increase is increasingly likely.

What Could This Mean for the Property Market?

Higher interest rates don't just affect existing mortgage holders. They can also influence property prices, borrowing capacity and buyer confidence.

As borrowing costs increase, some purchasers may find their borrowing capacity reduced, potentially resulting in softer buyer demand and greater negotiating opportunities.

For buyers who have their finances organised, changing market conditions may present opportunities to purchase a property at a more competitive price.

However, it's important to understand your borrowing capacity and ensure your repayments remain affordable before making an offer.

Is It Time to Review Your Home Loan?

With interest rates continuing to rise, now is a good time to check whether your existing home loan is still competitive.

You may be surprised to discover that another lender is offering a more attractive interest rate or loan features better suited to your circumstances.

Even if refinancing isn't the right option, your mortgage broker may be able to negotiate a better interest rate with your existing lender.

A home loan review could help you:

• Check whether you're paying a competitive interest rate.
• Explore opportunities to reduce your repayments.
• Compare alternative lenders and home loan products.
• Review your loan structure and features.
• Understand your options before further interest rate changes.

We're Here to Help

At Assured Lending Mortgage Brokers, we understand that rising interest rates can be stressful, particularly when household expenses are already increasing.

Whether you're looking to reduce your existing mortgage repayments, refinance or purchase a property, we're here to help you understand your options.

We compare a wide range of lenders and provide personalisedhome loan advice to help you make informed financial decisions.

Contact Assured Lending Mortgage Brokers today for a freehome loan review and find out whether you could be getting a better deal.

We put you first, not the lender.

Interest rate forecasts are current as at 29 October 2026 and are subject to change.

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