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CBA, ANZ, NAB, Westpac: What the rate hikes will cost you

·Personal Finance Editor
·4-min read
Australian money and logos for the NAB, Westpac, CBA and ANZ.
NAB, Westpac, CBA and ANZ have all chosen to pass on the RBA's rate hike to mortgage holders. (Source: Getty)

After a day of radio silence, Commonwealth Bank (CBA), ANZ, NAB and Westpac have all passed on the Reserve Bank’s (RBA) 0.5 per cent rate hike in full.

CBA was the first to break the news yesterday, followed by ANZ, Westpac and then NAB.

The RBA raised the official cash rate by 0.5 per cent to 1.85 per cent on Tuesday at the August meeting.

Mortgage holders have now been hit with four consecutive increases in as many months.

This is how much the most recent hike will cost you.

Commonwealth Bank

  • Hiked 0.5 per cent

  • Will come into effect August 12

CBA’s hike will take the bank’s lowest variable rate to 3.79 per cent. The last time CBA’s lowest variable rate was this high was just over three years ago in June 2019, according to RateCity.com.au.

Rate type

Old rate

New rate

Increase in repayments, $500K


Standard variable

5.80%

6.30%

$153


Discounted variable

5.10%

5.60%

$148


Lowest variable

3.29%

3.79%

$134


Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. An LVR of 70% applies to CBA’s lowest variable rate. Rates effective 12 August.

“Once again, CBA [was] the first big bank out of the blocks, albeit incredibly slowly this time,” RateCity research director Sally Tindall said.

“CBA’s decision to pass on the full hike to its variable-rate borrowers comes as no surprise, however. Customers already feeling the heat from the last three hikes may find this a difficult pill to swallow.”

ANZ

  • Hiked 0.5 per cent

  • Will come into effect August 12

The hike will take ANZ’s lowest variable rate to 3.69 per cent. The last time the rate on this home loan was this high was back in June 2019.

Rate type

Old rate

New rate

Increase in repayments, $500K


Index rate

5.64%

6.14%

$152


Discounted variable

4.24%

4.74%

$141


Lowest variable

3.19%

3.69%

$133


Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 debt and 25 years remaining. Lowest variable rate is for a loan-to-value ratio of up to 70%. New rates effective 12 August.

“ANZ has followed CBA’s lead, hiking variable mortgage rates by 0.50 percentage points, taking the bank’s lowest variable rate to 3.69 per cent,” Tindall said.

“Customers with large loans compared to their incomes will soon be really feeling the heat when this latest RBA hike hits their bank accounts.”

Westpac

  • Hiked 0.5 per cent

  • Will come into effect August 18

Westpac followed the lead of its peers, hiking variable mortgage rates by 0.5 per cent. 

Rate type

Old rate

New rate

Increase in repayments, $500K


Standard variable

5.73%

6.23%

$152


Discounted variable

4.44%

4.94%

$143


Lowest variable

3.14% for 2 yrs then 3.54%

3.64% for 2 yrs then 4.04%

$133


Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. New rates effective 18 August 2022.

Westpac also announced it would hike its Life and Spend&Save accounts by 0.50 percentage points, while the ongoing rate on its eSaver account will increase by 0.55 percentage points from 18 August.

“Westpac might be playing follow the leader when it comes to mortgages, but it’s breaking ranks on savings by hiking on most accounts,” Tindall said.

“This is a win for Westpac’s savings customers who are now starting to see decent hikes flow through to their hard-earned cash.”

NAB

  • Hiked 0.5 per cent

  • Will come into effect August 12

NAB’s lowest variable rate will rise to almost 4 per cent (3.94 per cent). The last time NAB’s lowest variable rate was this high was in March 2019.

Rate type

Old rate

New rate

Increase in repayments, $500K


Standard variable

5.77%

6.27%

$153


Discounted variable

4.92%

5.42%

$147


Lowest variable

3.44%

3.94%

$135


Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. New rates effective 12 August 2022.

NAB also passed on the full 0.50 percentage point hike to its two main savings accounts: Reward Saver and iSaver.

“NAB has stepped up to the plate and passed on full hikes to its two main savings accounts,” Tindall said.

“This is fantastic news for these customers who have been earning next to nothing on their savings for years.”

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