Rates went up again. Here’s how to get your breathing room back

This week’s interest rate rise probably didn’t surprise you.

But that doesn’t make it any less frustrating.

Especially after many people finally felt a bit of breathing room from rate cuts over the last 18 months.

Back in December, we said this was likely.

And unfortunately, this won’t be the last bit of pressure mortgage holders feel in 2026.

Quick note before we go on.

If you don’t have debt, this still matters.

Because someone close to you almost certainly does.

It might be your kids.

A mate.

A sibling.

Or someone at work who looks fine on the outside but is quietly stressing.

Sometimes the biggest value isn’t fixing your own situation, it’s noticing who else might need support.

Here’s why it hits so hard for some.

A 0.25% rate rise doesn’t sound like much.

But on the average Australian home loan it quietly adds hundreds, sometimes thousands of dollars a year to repayments.

No headlines.

No alarm bells.

Just less cash left over each month.

That’s the part that hurts.

I saw this play out recently with a client.

They weren’t reckless.

They weren’t overspending.

They were just busy.

Bills were paid.

Life was moving.

But they didn’t feel in control anymore.

That feeling, the tight chest, the mental load, that’s the real cost of rising rates.

So what actually helps right now?

Not guessing where rates go next.

Not hoping for cuts.

Creating breathing room where you can.

Here’s the simple framework we keep coming back to:

First: get clear.

You don’t need a fancy spreadsheet.

You just need to know:

• what comes in

• what goes out

• what’s left (or not)

Clarity removes fear.

Fog creates stress.

Second: build systems.

Once you’re clear, let your money do the heavy lifting.

Automate bills.

Separate accounts.

Create buffers.

Think of it like guard rails on a road, they don’t stop the journey they just stop accidents.

Third: compare and challenge.

After a rate rise, always check where your loan sits.

Ask for a rate review.

Know what others are offering.

Let your bank know you’re paying attention.

You don’t need to threaten.

You just need to be informed.

Money confidence doesn’t come from predicting the future.

It comes from knowing you can handle whatever shows up.

One quote I love fits perfectly here:

“You don’t rise to the level of your goals. You fall to the level of your systems.”

Rates may rise.

Costs may change.

But when your numbers are clear and your systems are strong, life feels steadier.

If you want help creating breathing room or reviewing your setup for 2026, just contact us with “RATES” or SMS to 0483 937 777 and we’ll walk through it together.

You don’t have to do this alone.

If you don’t have debt then a simple check-in with others like:

“How are you going with money lately?”

or

“Are you feeling okay about your repayments?”

can make a bigger difference than you realise.

Sometimes support isn’t advice.

It’s just letting someone know they’re not on their own.

Talk soon,

James

7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised throughCobalt AdvisersPty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative ofAustralian Finance GroupLtd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
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