Australian consumer sentiment fell 2.7% to 78.2 in November 2026, the lowest reading since late 2022, according to the Westpac–Melbourne Institute index released on 10 November. Mortgage holders were hit hardest: their sentiment dropped 11.6% to 68.1, a record low. It follows the Reserve Bank's 3 November rise in the cash rate to 4.85%, an 18-year high, which adds around $100 a month to a $600,000 loan in our illustrative example. Here is what the numbers mean for your household before the RBA meets again on 7–8 December.
What the November survey says
A reading below 100 means pessimists outnumber optimists. At 78.2, down from 80.4 in October, Westpac describes consumers as "deeply pessimistic", with "cost-of-living concerns front and centre". The fall was centred on a sharp deterioration in the near-term economic outlook.
- Mortgage holders: sentiment fell 11.6% to 68.1, the lowest on record for this group.
- Rate expectations: 72% expect mortgage rates to rise over the next year, down from 80% in October but up from 64% in September.
- House prices: a "big downgrade" in what people expect for prices.
- Christmas: Westpac says spending plans show the "mortgage belt tightening up".
- Jobs: job-loss worries are rising gradually, but consumers are "not overly alarmed".
The context: the RBA board voted 6–3 on Melbourne Cup Day to lift the cash rate 25 basis points to 4.85%, and many of the people surveyed answered after that decision.
The number behind the mood: your repayment
Sentiment is a feeling; repayments are a figure on your statement. We calculated a 0.25-point rise on a 30-year principal-and-interest loan, using an illustrative variable rate moving from 6.60% to 6.85%. Your own rate and remaining term will differ, so check your lender's notice.
| Loan balance | Monthly at 6.60% | Monthly at 6.85% | Extra / month | Extra / year |
|---|---|---|---|---|
| $400,000 | $2,555 | $2,621 | $66 | $797 |
| $600,000 | $3,832 | $3,932 | $100 | $1,195 |
| $800,000 | $5,109 | $5,242 | $133 | $1,594 |
Illustrative examples, calculated with the standard amortisation formula. Savings.com.au estimated around $80 a month extra on a $500,000 loan for this hike.
A record-low mood among mortgage holders is not just a headline. For many, it is the feeling of $100 more going out every month, with Christmas five weeks away.
When the whole country is feeling anxious about money, it is easy to freeze, avoid the statement, or spend to feel better. None of those lower a repayment.
The Matriarch's Money Brain Workbook helps you work with the worry instead of against it:
- Spot your money-stress patterns (avoiding, overspending, over-checking) and what triggers them
- Rewrite the money stories that make rate news feel like a personal failure
- Guided exercises to open the bank app and the lender's letter calmly, then make one decision
100% digital PDF, nothing shipped and no shipping fees. Download right after purchase, then print it or use it on your phone, tablet or computer. One-time purchase.
Does this affect me? The decision table
| If you are... | Exposure | Do this before 8 December |
|---|---|---|
| On a variable mortgage | High | Check your new repayment date and amount; ask your lender for a rate review |
| Rolling off a fixed rate in 2027 | High, delayed | Price your likely new repayment now and start saving the difference |
| Renting | Indirect | Know your state's rent-increase notice rules before your next renewal |
| Saving, no debt | Positive | Compare your savings rate; higher cash rates should mean better deposit rates |
| Already struggling with repayments | Urgent | Contact your lender's hardship team now, before a missed payment |
Four steps for the mortgage belt this month
- Find the real figure. Log in and note the new repayment and the date it starts.
- Set a Christmas ceiling. If the hike costs you $100 a month, consider trimming the gift budget by roughly that amount for December so the first higher repayment is covered.
- Ask for a better rate. A short call to your lender quoting competitor rates is one of the fastest ways to offset a hike.
- Use free help early. Moneysmart (moneysmart.gov.au) has a mortgage calculator, and the National Debt Helpline (1800 007 007) offers free financial counselling.
If news about rates is keeping you up at night, talk to someone you trust or a professional. Feeling anxious when 7 in 10 people expect rates to rise again is a normal response, not a personal failing.
Read next
- RBA Hikes to 4.85%: Your Repayment and What to Do by 8 December
- Emergency Fund Australia 2026: 1 in 6 Can't Last a Week
- Household Spending Australia Sept 2026: Up 6.8%, 7 Myths
- Living Cost Index Australia Sept 2026: Your 5.1% Rise in $
FAQ
What is the consumer sentiment index for November 2026?
The Westpac–Melbourne Institute index fell 2.7% to 78.2 in November 2026, from 80.4 in October, the lowest since late 2022.
Why are mortgage holders so pessimistic?
The RBA lifted the cash rate to 4.85% on 3 November, raising variable repayments, and 72% of consumers expect mortgage rates to rise further over the next year. Mortgage holder sentiment fell to a record low of 68.1.
When is the next RBA decision?
The Reserve Bank board's next meeting is on 7–8 December 2026, with the decision announced on 8 December.
Sources
- Westpac IQ, "Consumer sentiment sinks to new low", Westpac–Melbourne Institute Consumer Sentiment, November 2026, released 10 Nov 2026.
- Reserve Bank of Australia, Monetary Policy Decision, 3 Nov 2026 (cash rate 4.85%), via Savings.com.au, "RBA lifts cash rate to 4.85%".
- Savings.com.au, repayment estimate and next RBA meeting dates (7–8 Dec 2026).
- Moneysmart (ASIC), mortgage calculator and help with repayments.
- National Debt Helpline, free financial counselling (1800 007 007).
Start gently with the free 7-Day Money Anxiety Reset journal.
Educational content only. Not personalised financial advice.