Sophie Foster
Updated 8 May 2026, 9:27am
First published 8 May 2026, 1:30am
A 36-lender mortgage repricing wave is sweeping Australia, hitting even the cheapest mortgages over the next five weeks - with worse still to come through the year.
Borrowers are being dragged through a staggered repricing cycle that will take five weeks as lenders lift rates in rolling waves rather than a single co-ordinated move, according to latest data from Canstar.
It shows even lenders that cut rates since April 1 - including ING, Virgin Money and Bank of Queensland - are now reversing course as pricing pressure spreads across the system.
Pockets of relief are also disappearing with some of the country’s cheapest lenders, such as LCU, Homestar Finance, Southern Cross Credit Union and Greater Bank, also joining the shift. All four remain under 6 per cent, but this segment is now rapidly shrinking.
The increases have already started with smaller lenders from May 6, led by LCU, followed by Bank of Queensland and AMP today (May 8), then Homestar Finance on May 11.
RBA Governor Michele Bullock announced the third rate hike in a row on Tuesday.
Momentum builds mid-month as Bendigo Bank, Credit Union SA, Auswide Bank and MyState Bank move on May 13 and 14.
But the biggest jump will be on May 15 when the majority of mortgages are hit by major banks in unison - Commonwealth Bank, Westpac, National Australia Bank and ANZ Bank - alongside ING, Suncorp, BankSA, Bank of Melbourne, Great Southern Bank and Greater Bank.
Virgin Money follows on May 16, extending pressure through the same week.
Mortgage rate hikes will be rolled out in four waves across 36 lenders in the country.
Late May brings another wave as Heritage Bank, Bank Australia, Qudos Bank, Macquarie Bank and Bank First move between May 19 and May 27.
The final cluster arrives in June, with Australian Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and Unibank lifting rates from June 1.
Beyond Bank will be the last to move on June 10, just five days before the next RBA monetary policy board meeting begins.
Canstar data insights director Sally Tindall warns many Aussies are already feeling the pinch.
Canstar.com.au data insights director Sally Tindall said many Aussies were already feeling pressure from rising everyday costs, with spending on essentials up 8.1 per cent.
She warned households needed to act quickly to reduce debt exposure as financial pressure builds - even if that means having to consider selling the second car or getting a second job.
PropTrack senior economist Eleanor Creagh warned further tightening could still be ahead if inflation remains stubborn. Markets are pricing in additional risk of rate hikes, with the latest estimate indicating a further 40 basis points of rises are ahead in 2026.
PropTrack senior economist Eleanor Creagh said markets were pricing in further cuts this year.
Will Silk of JLL Residential Research said higher rates will quickly reduce borrowing capacity, particularly for first-home buyers and owner-occupiers already under pressure.
He warned affordability would continue to deteriorate as repayments rise and lending capacity tightens.
The next RBA monetary policy announcement is scheduled for June 16 at 2.30pm AEST.
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