Yahoo Finance CBA, ANZ, NAB, Westpac: What the rate hikes will cost you
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.
Also read: How to ease mortgage pain amid rapidly rising interest rates
Also read: RBA rate rise: What to do if you are facing mortgage stress
Also read: Forget the RBA, here's how to get 10 rate cuts today
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.”
Follow Yahoo Finance on Facebook, LinkedIn, Instagram and Twitter, and subscribe to the free Fully Briefed daily newsletter.
