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CBA, NAB and ANZ customers hit with higher interest rates today

NAB Westpac Commonwealth Bank ANZ. Australian money notes.
CBA, NAB and ANZ customers will be hit with higher interest rates from today, with Westpac following next week. (Source: Getty)

Aussies who have a CBA, NAB and ANZ variable home loan will be hit with higher interest rates from today, as the December rate hike kicks in.

The Reserve Bank (RBA) raised the official cash rate for the eighth time earlier this month, with the 0.25 per cent hike bringing the rate to 3.10 per cent.

According to RateCity analysis, the average borrower will now be charged an extra $834 as a result of the eight rate hikes. This was based on an owner-occupier who had a $500,000 loan over 25 years at the start of May.

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Westpac customers are also in for further rate pain, with the December hike coming into effect next Tuesday, December 20.

“Many home loan customers will soon need to start battening down the hatches, if they haven’t already, as the eighth rate hike hits their mortgages today,” RateCity research director Sally Tindall said.

“While customers aren’t likely to see this extra money come out of their loan until well into the New Year, borrowers should check now to make sure they’ve got the funds to clear these higher repayments.”

Tindall said borrowers should also prepare their budgets for further rate hikes next year.

“Check your budget will be able to hold up against another three - potentially even four - more rate hikes. If it can’t, now is the time to do something about it,” she said.

What are the lowest rates?

According to RateCity, 4.64 per cent will be the new lowest variable rate from the Big Four banks. This will be from Westpac, effective next Tuesday. But there is a catch, with the rate increasing by 0.40 per cent after two years.

Rate City table
Source: RateCity. Rates are for owner-occupiers paying principal and interest. LVR requirements apply on some rates. Westpac rates effective December 20.

The new lowest variable rate from all lenders would be 4.44 per cent, RateCity revealed, based on those that had announced December RBA changes.

A competitive rate for owner-occupiers would be below 4.70 per cent, RateCity said, while a great rate would be under 4.50 per cent.

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