Comparison table of higher mortgage costs
Here is a comparison of peak covid April 2020 rates and now with high inflation.:
| Metric | April 2020 (COVID onset) | Now (Apr 2026) | Scenario (Sep 2026 – higher rates) |
|---|---|---|---|
| RBA Cash Rate | 0.25% (later 0.10%) | 4.10% | 4.75% – 5.25% * |
| Standard Variable Rate (headline) | ~4.3% – 4.8% | ~6.0% – 6.7% | 7.2% – 8.0% |
| Typical Discounted Variable Rate | ~2.8% – 3.4% | ~5.7% – 6.3% | 7.0% – 7.5% |
| Inflation מצב | Very low / deflation risk | Moderating (post-peak) | High (sticky and high fuel costs) |
| Borrower Stress Level | Low | Elevated | High / widespread stress pockets |
| Monthly Repayment ($730k, 25 yrs) | ~$3,460 | ~$4,600 – $4,850 | ~$5,160 – $5,400 |
| Change vs 2020 baseline | — | +$1,100 to +$1,400 | +$1,700 to +$1,940 |
* Based on Westpac economist Justin Smirk "This all predates the current crisis in the Middle East. Westpac now expects headline inflation to be around 5½%yr, on a monthly basis, by mid-year. "
If September scenario plays out, then mortgage costs are ~50–55% higher than COVID-era reality. If wages do not increase significantly then the double whammy of higher mortgage payments and higher cost of living costs will cause significant financial stress to pockets of mortgage holders.
Posted Apr 7, 2026, 11:19 AM UTC
1016