Just in time for Christmas, many Australian mortgage holders are facing a tough holiday season. With interest rates rising rapidly, some banks have already increased their fixed rates, adding extra financial pressure on households already feeling the squeeze. As we head into the festive period, more rate hikes are expected, and some homeowners are bracing for a financial Christmas nightmare.<\/p>\n\n\n\n
In a move that\u2019s putting many Aussies on edge, ING has raised its fixed interest rates by up to 0.35 percentage points. As of last week, the starting fixed rates now begin at 5.39% and can go as high as 5.94% depending on a borrower\u2019s loan-to-valuation ratio. This change comes just days before Christmas, leaving many homeowners scrambling to adjust their budgets before the end of the year.<\/p>\n\n\n\n
But ING isn\u2019t the only bank raising rates. In fact, 12 lenders, including major players like Westpac, St George, Bank of Melbourne, HSBC, and Suncorp, have increased their fixed rates in the past week. It\u2019s part of a wider trend where, over the course of just seven days, 298 fixed rates were hiked. This marks a significant shift from the earlier predictions of rate cuts and highlights the growing pressure on Australian households as inflation remains stubbornly high at 3.8%.<\/p>\n\n\n\n
The banks aren\u2019t just making these decisions out of the blue. A combination of economic factors, including a stronger-than-expected economy, is driving these rate hikes. As the Reserve Bank of Australia (RBA<\/a>) prepares for its first meeting in February, economists are divided over whether the RBA will raise rates further. However, many are now expecting small increases due to the persistent inflation and the economic recovery taking place, which has been much more robust than anticipated.<\/p>\n\n\n\n <\/p>\n\n\n\n In the meantime, families across the country are feeling the effects. For mortgage holders, the hikes mean higher monthly repayments and less room in the budget for Christmas spending. With costs rising across the board\u2014whether it\u2019s food, gifts, or travel\u2014the financial strain is weighing heavily on many Aussies.<\/p>\n\n\n\n![\"interest](\"https:\/\/en.econostrum.info\/au\/wp-content\/uploads\/sites\/7\/2025\/09\/rba-1200x727.jpg\")