RBA raises rates again: What the May 2026 cash rate decision means for you
The Reserve Bank of Australia has increased the cash rate for the third time in 2026, pushing it to 4.35%. The decision comes as inflation continues to put pressure on household budgets across the country – and for many homeowners, it means another increase to monthly mortgage repayments.
So what does this actually look like in dollar terms? Across the three rate rises this year, the cash rate has climbed 0.75 percentage points. For the average homeowner, that could translate to roughly $335 more per month in repayments. If you’re looking to buy, it may also reduce how much you’re able to borrow.
There’s no sugar coating it – this is a tough environment. The cost of living is climbing, interest rates are rising, and it can feel like there’s not much you can do about it. But there are some practical steps worth taking right now that can make a real difference.
6 ways to save despite the rate rise
1. Review your home loan
If you haven’t had your loan reviewed recently, now is the time. Lenders are constantly adjusting their rates and offers, and the loan that was competitive 12 months ago may not be anymore. A quick conversation with a mortgage broker costs you nothing and could save you significantly – either by finding a lower rate or restructuring your loan to better suit your current situation.
2. Consolidate your debts
If you’re carrying multiple debts – a car loan, personal loan, or credit card balances – it may be worth exploring whether you can consolidate them into a single, lower-interest facility. This can simplify your repayments and reduce the total interest you’re paying. It’s not the right move for everyone, so it’s worth getting personalised advice before proceeding.
3. Review your health insurance
Health insurance premiums increased on 1 April, which makes this a good time to check what you’re paying and whether you’re still getting value. Comparison sites like Canstar, Compare the Market, and Finder make it straightforward to see what else is available at your tier of cover.
If you are in a position to pay for a year upfront, try to do it in late March each year to lock in the prices before the increase takes effect.
4. Compare your electricity
Energy bills have been steadily increasing for many Australian households. It’s worth comparing providers to see if you could be paying less. The government’s energy comparison website at energy.gov.au is a good starting point.
In addition, many states are offering fantastic rebates for installing solar and home battery systems at the moment – my family personally installed a system this year cutting our expenses from ~$500 a month to ~$50 and it has a less than 2 year pay back period. We are very high energy users due to having an EV and working from home often, but the figures are worth running for your situation too.
5. Find cheaper fuel
Apps like PetrolSpy, FuelMap, and Motormouth let you see real-time price differences at servos near you. The My 7-Eleven app also lets you lock in a fuel price for up to seven days – useful if you know you’ll need to fill up soon. Better yet, see if an EV might be feasible for your situation and cut the petrol cost out entirely – Ingram Financial can assist with your car loan if needed.
6. Audit your subscriptions and budget
It sounds basic, but a lot of people are still paying for subscriptions or services they’ve forgotten about. Take 20 minutes to go through your bank statements and cancel anything you’re not actively using. Every dollar adds up.
The bigger picture
Rate rises feel uncomfortable, but they’re also a prompt to make sure your finances are working as hard as possible for you. If you haven’t had a home loan health check in the last 12 months, that’s the single biggest lever most people can pull right now.
If you’d like to talk through your options, get in touch with the Ingram Financial team. We’ll take a look at your current loan, compare it against what’s available in the market, and give you an honest assessment — at no cost to you.
