Originally published: Compare the Market, 06 August 2026
Two-thirds of Australians say they will be worse off if the RBA increases the cash rate again this year, according to new research from Compare the Market, highlighting a growing divide between people paying off a mortgage and those who own their home outright.*
Australian households may have weathered three cash rate hikes already this year, but 65% of Australians surveyed said their household would be negatively impacted if interest rates increase again – compared to just 35% who said it wouldn’t have a major impact on their household.
With around 31% of Australians owning their home outright, the figures may point to a two-speed economy. Households with mortgages or rent increases are being forced to cut back, while some debt-free homeowners may have more capacity to keep spending. It’s a dynamic that threatens to blunt the impact of monetary policy and keep inflation higher for longer.
*Compare the Market commissioned Pureprofile to survey 1,018 18+ aged Australian adults, conducted July 2026.
