Australia markets close in 5 hours 30 minutes
  • ALL ORDS

    6,711.30
    +14.80 (+0.22%)
     
  • ASX 200

    6,510.00
    +13.80 (+0.21%)
     
  • AUD/USD

    0.6437
    +0.0003 (+0.05%)
     
  • OIL

    78.60
    +0.10 (+0.13%)
     
  • GOLD

    1,635.70
    -0.50 (-0.03%)
     
  • BTC-AUD

    29,728.20
    -406.28 (-1.35%)
     
  • CMC Crypto 200

    440.14
    -18.99 (-4.14%)
     
  • AUD/EUR

    0.6715
    +0.0015 (+0.23%)
     
  • AUD/NZD

    1.1443
    +0.0031 (+0.27%)
     
  • NZX 50

    11,247.99
    +33.50 (+0.30%)
     
  • NASDAQ

    11,271.75
    +17.64 (+0.16%)
     
  • FTSE

    6,984.59
    -36.36 (-0.52%)
     
  • Dow Jones

    29,134.99
    -125.82 (-0.43%)
     
  • DAX

    12,139.68
    -88.24 (-0.72%)
     
  • Hang Seng

    17,860.31
    +5.17 (+0.03%)
     
  • NIKKEI 225

    26,487.91
    -83.96 (-0.32%)
     

CBA, ANZ and NAB customers hit with home loan hike

·Personal Finance Editor
·5-min read
The logos of NAB, Westpac, CBA and ANZ and an aerial view of a suburb.
CBA, ANZ and NAB have passed on the full rate hike to customers. (Source: Getty)

Commonwealth Bank (CBA), ANZ and NAB disappointed some customers by announcing rate hikes for variable loans in the wake of the Reserve Bank’s decision on Tuesday.

CBA bucked the trend and announced it will hike some savings accounts as well as variable home loan rates.

Unlike NAB and ANZ, which did not announce any rate hikes for savers, Australia’s largest bank is passing on 0.60 percentage points to its popular GoalSaver and Youthsaver accounts.

From next Friday, the GoalSaver account will have a maximum ongoing rate of 2.10 per cent.

CBA has, so far, not announced a rate increase to its NetBank Saver account, but the bank will increase some term deposit rates by up to 0.75 percentage points from Monday.

CBA savings rate changes – effective 16 September

Old max rate

New max rate

Change% points


GoalSaver

1.50%

2.10%

+0.60%


Youthsaver

1.70%

2.30%

+0.60%


NetBank Saver

1.80% for 5mths then 0.85%

1.80% for 5mths then 0.85%

0%


The GoalSaver rate rise from CBA will put pressure on the other big four banks to also hike their bonus saver accounts.

RateCity.com.au research director, Sally Tindall, said it might have taken CBA over three days to make its rate announcement but at least the bank has made the right decision.

“Hiking the GoalSaver and Youthsaver rates beyond the RBA hikes is a win for these customers,” Tindall said.

“When Australia’s biggest bank moves, others often follow. By lifting savings rates beyond the RBA this month, CBA is putting pressure on its competitors to follow suit.

“CBA’s NetBank Saver customers, however, have missed out at this stage, with the bank leaving the ongoing rate at just 0.85 per cent – almost three times lower than the current cash rate.

“If you’ve got money in the bank, find out what rate you’ll soon be getting. A competitive rate after the hikes filter through will be over 3 per cent.

Variable rate mortgage changes

CBA

From Friday next week, CBA variable mortgage rates will rise by 0.50 percentage points, taking the bank’s lowest variable rate to 4.19 per cent.

CBA variable rate changes for owner-occupiers – effective 16 September

Old rate

New rate

Increase in repayments, $500K


Lowest variable

3.69%

4.19%

$137


Discounted variable

5.60%

6.10%

$151


Standard variable

6.30%

6.80%

$156


“This latest home loan hike might take a couple of months to hit people’s bank accounts, but when it does, it’s going to hurt plenty of families already feeling the pinch.

“Don’t wait until the day before your higher repayment kicks in, start making cutbacks now, because there’s more rate pain ahead.

“If you won’t have enough money to clear these higher repayments, let your bank know before the next bill is due.

“Your bank doesn’t want to see you default on your home loan any more than you do,” she said.

NAB

From next Friday, NAB’s variable home loan rates for new and existing customers will go up by 0.50 percentage points. As a result, NAB’s lowest variable rate will rise to 4.24 per cent.

NAB variable rate changes for owner-occupiers – effective 16 September


Old rate

New rate

Increase in repayments, $500K


Lowest variable

3.74%

4.24%

$138


Discounted variable rate

5.42%

5.92%

$150


Standard variable rate

6.27%

6.77%

$156


ANZ

ANZ will also hike its variable home loan rates for new and existing customers by 0.50 percentage points next Friday, taking its lowest variable rate to 4.19 per cent.

ANZ variable rate changes for owner-occupiers – effective 16 September


Old rate

New rate

Increase in repayments, $500K


Lowest variable

3.69%

4.19%

$137


Discounted variable rate

4.74%

5.24%

$145


Standard variable rate

6.14%

6.64%

$155


“It’s hard to understand why it’s taken ANZ and NAB three days to make their interest rate announcements following the RBA decision on Tuesday,” Tindall said.

“The banks have shown us in the past they’re highly capable of making these decisions within hours, not days.”

Savers miss out

Both NAB and ANZ have not announced any savings rate changes, despite the cash rate going up by 0.50 percentage points.

NAB savings rates analysis:

  • NAB’s maximum Reward Saver rate is 1.75% - 0.60% points below the cash rate.

  • NAB’s iSaver rate for existing customers is 0.85% - 1.5% points below the cash rate and 2.75% points lower than current market leader.

ANZ savings rates analysis:

  • ANZ’s maximum Progress Saver rate is 1.65% - 0.70% points below cash rate.

  • ANZ’s Online Saver rate for existing customers is 0.60% - 1.75% points below the cash rate and 3.00% points lower than current market leader.

  • ANZ’s PLUS Save account is 2.70% - 0.35% points above the cash rate.

“The concern is, savings customers with ANZ and NAB will miss the news that their bank isn’t passing on the rate hike to them at this stage,” Tindall said.

“The millions of ANZ and NAB customers with savings accounts should pick up the phone and ask their bank to do the right thing and pass this hike on in full.

“A flood of angry savings customers might be the push NAB and ANZ need to re-think their rates.

“Let’s just hope when CBA and Westpac do make their announcements, they include full hikes for all of their savings customers,” she said.

Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.