Most Australians don’t have a mortgage. Rate rises could leave them better off

November 10, 2026 — 11:24am

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The last time interest rates were this high was in 2008 during the global financial crisis. If you’ve been reading the news like I have, it’s hard to miss alarmist headlines labelling the recent rate hike as “Friday the 13th horror” and “utter madness”.

But high interest rates aren’t all bad. While homeowners often get attention because their repayments rise, only around one in three Australian households have a mortgage. Higher interest rates put more money into savings accounts, so many Australians may find themselves better-off after a rate rise.

First, it’s important to understand exactly why the RBA keeps raising interest rates. Often referred to as a “blunt instrument”, interest rates are the Reserve Bank of Australia’s (RBA) primary tool to try and jointly achieve two things:

To keep inflation low and stable

Ensure as many people are in jobs as possible

While the second goal is going okay – with a relatively low unemployment rate of 4.7 per cent – persistently high inflation is a major problem. The........

© The Sydney Morning Herald