It's the news many mortgage holders were hoping wouldn't come.
The Reserve Bank of Australia has increased the official cash rate by 25 basis points, taking it to 4.60%.
That's the fourth hike of 2026, following increases in February, March and May.
It's also the highest the cash rate has been since October 2011.
Here's what happened, and what it could mean for your mortgage.
Why the RBA moved again
In its statement, the RBA's Monetary Policy Board said inflation remained above its 2-3% target band, with a recent spike in global oil prices adding further pressure to costs.
The board noted that underlying inflation had been declining as expected until the start of this year, but that progress had slowed since the March quarter.
With demand and supply pressures not easing fast enough, the board judged it necessary to lift the rate to keep inflation on track to return to target.
The RBA is signalling more pain could come
The statement also warned that the board was not ruling anything in or out, and would adjust the cash rate as needed to keep inflation sustainably back within the target band.
In other words, if inflation does not move back towards 3% soon, another hike could follow.
Governor Michele Bullock also made it clear the board would continue analysing incoming data and updating its outlook for inflation and the broader economy at each meeting.
You can track each cash rate decision on the RBA's monetary policy page.
How could this affect your mortgage repayments?
If your lender passes on the full 25 basis point increase, a borrower with a $500,000 loan balance, 30-year term and around 25 years remaining could pay roughly $77 more each month.
That's about $924 a year extra, and around $3,696 annually when combined with all four rate hikes this year.
A borrower with a $750,000 balance could face roughly $115 more per month.
And a $1 million loan balance could see repayments rise by about $154 each month.
Of course, it depends on whether your lender passes on the full 25 basis point increase to your home loan.
When did you last refinance your home loan?
This latest RBA hike is another tough pill to swallow for mortgage holders on a variable rate. It hurts, but there are still some steps you could potentially take to help offset the rate hike.
If it's been some time since your last home loan review, now might be a good time to check in.
There's a chance you might be able to improve your situation by switching to a lender with a lower-rate home loan, potentially giving you a rate cut of your own.
Other options we could help you explore include renegotiating with your current lender, switching to interest-only for a period of time, or debt consolidation.
Every household is unique, and we're committed to helping you find a solution that fits your needs.
Call us today
Rate rises are outside our control, but how your loan is structured isn't.
If the latest hike has you worried about your repayments, call Jason today for a free, no-obligation chat about your options.