CBA, ANZ, NAB and Westpac hike rates: How much it will cost
All four major banks - CBA, ANZ, NAB and Westpac - have hiked variable mortgage rates by 0.50 per cent following the Reserve Bank of Australia’s (RBA) interest rate hike on Tuesday.
This was the third consecutive month the RBA lifted the cash rate, bringing it to 1.35 per cent.
The RBA is struggling to get inflation under control, with the War in Ukraine, COVID-19 lockdowns and floods in New South Wales all putting pressure on supply chains.
Also read: RBA warning: Inflation and rates to surge
Also read: RBA rate rise: What to do if you are facing mortgage stress
Also read: When interest rates were 17.5%: 'No light at the end of the tunnel'
RateCity.com.au research director Sally Tindall said the rate hikes would add pressure to Aussies already struggling with repayments.
“The big banks have once again played follow the leader, hiking one after the other by the full 0.50 percentage points,” Tindall said.
“This means variable borrowers across the country will be subjected to sizable hikes in their monthly repayments.
“These hikes could push more borrowers into mortgage stress, making it tricky for many families to balance the budget each month.”
Tindall said those already spending a sizable chunk of their incomes on their mortgage should consider ways to give themselves a bigger buffer.
“Making small adjustments to the way you live week-to-week, such as buying take-away coffees as a treat rather than the norm, might seem insignificant, but they all add up,” she said.
“Now is a great time to review your bills, including your mortgage, to make sure you’re on the best deals possible,” she said.
Here is a breakdown of the Big Four hikes and what it means for customers.
Commonwealth Bank
Passed on full 0.50 per cent hike
Will come into effect July 15
Australia’s largest bank, CBA, was the first of the Big Four to announce it would pass the double cash rate hike onto its variable home loan customers.
From July 15, CBA mortgage rates for new and existing customers will go up by 0.50 percentage points. After these hikes, CBA will have no advertised rates under 3 per cent.
Existing customers with a $500,000 debt and 25 years remaining on the loan could see repayments increase by up to $149 a month.
Rate type | Old rate | New rate | Increase in repayments, $500K | |
Standard variable | 5.30% | 5.80% | $149 | |
Discounted variable | 4.60% | 5.10% | $144 | |
Lowest variable | 2.79% | 3.29% | $130 |
ANZ
Passed on full 0.50 per cent hike
Will come into effect July 15
ANZ has followed CBA and hiked variable rate mortgages by the full 0.50 percentage points.
The revised rates will be effective for both new and existing customers on July 15.
Existing customers with a $500,000 debt and 25 years remaining on the loan could see repayments increase by up to $148 a month.
Rate type | Old rate | New rate | Increase in repayments, $500K | |
Index Rate | 5.14% | 5.64% | $148 | |
Discounted variable | 3.74% | 4.24% | $138 | |
Lowest variable | 2.79% | 3.29% | $130 |
NAB
Passed on full 0.50 per cent hike
Will come into effect July 15
NAB was the third big bank to announce it was passing on the full RBA hike to variable rate mortgage customers.
From July 15, NAB variable home loan rates for new and existing customers will go up by 0.50 percentage points.
Existing customers with a $500,000 debt and 25 years remaining on the loan could see repayments increase by up to $149 a month.
Rate type | Old rate | New rate | Increase in repayments, $500K | |
Standard variable | 5.27% | 5.77% | $149 | |
Discounted variable | 4.42% | 4.92% | $143 | |
Lowest variable | 2.94% | 3.44% | $131 |
Westpac
Passed on full 0.50 per cent hike
Will come into effect July 20
Westpac was the last Big Four bank to announce it was passing on the full RBA hike to variable rate mortgage customers.
From July 20, Westpac variable home loan rates for new and existing customers will go up by 0.50 percentage points.
Existing customers with a $500,000 debt and 25 years remaining on the loan could see repayments increase by up to $149 a month.
Rate type | Old rate | New rate | Increase in repayments, $500K | |
Standard variable | 5.23% | 5.73% (5.83% for LVRs over 80%) | $149 | |
Discounted variable | 3.94% | 4.44% | $139 | |
Lowest variable | 2.64% for 2yrs then 3.04% | 3.14% for 2yrs then 3.54% | $129 |
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