<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>As mortgage-holders struggle to adjust to </span><a href="https://www.9news.com.au/finance/rba-interest-rates-live-updates-may-2026-decision-latest-news-headlines/712337f5-b510-4280-9a17-a45d7826e847" rel="" target="_blank" title="a third straight interest rate rise"><span>a third straight interest rate rise</span></a><span>, new research reveals how much the </span><a href="https://www.9news.com.au/banks" rel="" target="_blank" title="banks"><span>banks</span></a><span> make from customers chasing the Australian dream.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australia Institute says the big four banks - CBA, NAB, Westpac, and ANZ - rake in an average of $228,900 in profit over the 30-year span of an average $736,000 home loan.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Last year, those banks' profits rose to a collective $43 billion pre-tax, $16.9 billion of which was paid by owner-occupiers with a mortgage.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-may-7-donald-trump-latest-world-news-headlines/9dd6d311-7b77-4efc-942d-cda690dd3921" rel="" target="_blank" title=""><strong><span>Saudi backlash forced Trump to back down</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Institute found that mortgages for owner-occupiers made up 22.7 per cent of the big four banks' loans, they provided a "disproportionate" 39.3 per cent of their profits.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The banks also joined mining giants Rio Tinto and BHP as the top six most profitable companies in Australia.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Australia Institute co-chief executive Dr Richard Denniss said the figures were "obscene".</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/big-four-banks-how-much-they-make-off-home-loans/dbbbe7b8-4935-4908-b346-524fa3efca6b" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/world/jeffrey-epstein-suicide-note-released-by-court-usa-news/3fa8a590-7a16-46e3-adc1-685d7f87eaaf" rel="" target="_blank" title=""><strong><span>Jeffrey Epstein suicide note released by New York court</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"While so many Australians are going backwards, the banks' profits are only going in one direction – up," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In the first year of their mortgage, Australian homeowners are contributing more than $900 a month to their bank's profit."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Institute also criticised the Reserve Bank's decision to lift interest rates to 4.35 per cent at Tuesday's board meeting.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/isis-brides-return-australia/ae0c5676-c9ec-46e2-9d27-dfce7e46db01" rel="" target="_blank" title=""><strong><span>Kids deserve 'second chance' senator says as ISIS-linked cohort returns</span></strong></a><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The increase saw interest rates hit their highest level in 15 years.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Senior economist Matt Grudnoff said the decision risked pushing the country into recession, and that increasing interest rates would not reopen the Strait of Hormuz.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"All this does is heap more pain on already stretched households," he said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The only tool the RBA has to fight inflation is to change interest rates. But interest rates are ineffective at stopping inflation caused by supply shocks."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>If Australia is nudged into recession, Grudnoff said, the RBA would be forced to rapidly lower interest rates again in an effort to stimulate the economy, which would be a "humiliating backflip".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>