Mortgage brokers in regional Western Australia and Tasmania are refinancing clients onto fresh loan terms and consolidating debts to ease repayment pressure, as the Reserve Bank of Australia’s (RBA) rate rises work through household budgets in November 2026.
The RBA lifted the cash rate to 4.85% on 3 November, its fifth increase this year, with the major banks passing it on in full. OurTop10’s latest Default Loan Report, modelled by Digital Finance Analytics, estimates a record 24,546 households are at risk of mortgage default.
When one couple took out their home loan, rates were much lower and both partners worked full time. After they had children, one partner reduced their hours, leaving the household with higher repayments and less income.
Eli Hayes (pictured left), owner manager of Mortgage Choice in Albany, said his team refinanced the couple’s owner-occupied loan at a lower rate over a new 30-year term, lowering their required repayments and leaving room in their budget. The trade-off of a longer term is more interest overall, which was explained to the couple, but repayments can be revisited if rates fall or their circumstances improve, helping them work back towards their original payoff date.
The case reflects a wider trend, Hayes said. More clients are raising repayment concerns, particularly those who borrowed at low rates a few years ago and have since started families, as well as single-income borrowers.
Beyond fresh 30-year terms, Hayes said his team may consider lenders offering 35- or 40-year loans for suitable clients, while making the extra long-term interest cost clear.
In Tasmania, Chris Antypas (pictured right), franchisee at Aussie Launceston, said debt consolidation is one of the most common topics when his team checks in with existing customers after rate changes. Refinancing for a marginally lower rate rarely saves enough by itself, he said, but rolling in personal loans or car finance can cut monthly repayments enough to soften, and in some cases cancel out, the effect of successive rate rises.
Consolidation has a cost, however. Mortgage broker and economist Joseph Daoud estimates that rolling $40,000 of credit card and personal loan debt into a 30-year mortgage could cut repayments from around $977 to $260 a month, but lift total interest from $18,600 to about $53,000.
For single applicants, Hayes said his team also looks at ways to boost income, such as renting out a spare room. Where refinancing isn’t an option, the team helps clients negotiate workable repayments or hardship support with their lender, and regular rate reviews let clients choose between lowering repayments or keeping them steady to pay down principal faster.
Antypas said he hadn’t yet seen a significant rise in repayment concerns among Tasmanian customers, though the issue is being discussed more widely across the market. Because higher repayments take several months to hit household budgets, he said the impact may become clearer after Christmas. “We may be on the cusp of seeing more customers raise concerns”, Antypas said.
He is also seeing more business owners seeking additional finance, which he said points to wider pressure across the economy.
For Hayes, timing is critical. “Our message is to act early, before repayments become unmanageable,” he said.
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