CBA, NAB and ANZ customers hit with higher rates today
Millions of Aussie mortgage holders will be hit with higher costs today.
Millions of Aussies with a Commonwealth Bank, NAB or ANZ variable-rate home loan will be slugged with higher interest rates from today, as the Reserve Bank’s latest hike kicks in.
Westpac customers will also need to prepare themselves for a rate hike, with the bank’s changes flowing through on Tuesday, March 21.
RateCity analysis found the average owner-occupier with a $500,000 debt and 25 years remaining would now be paying $3,318 in repayments each month - an increase of $983 since May last year.
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While many banks would charge the higher rate today, RateCity noted that lenders typically gave customers one month’s notice before taking the extra money out of their account.
RateCity research director Sally Tindall said customers worried about the repayments should start looking at their options.
“If you don’t think you can make the higher repayments, use this time to look at alternatives, whether that’s refinancing, haggling with your existing bank for a rate cut or moving temporarily to part payments,” Tindall said.
“Owner-occupiers looking to refinance may still be able to get a rate that’s a fraction below 5 per cent, although these loans are becoming increasingly difficult to find.”
While part payments provided some breathing room, Tindall said it could be costly in the long term and should be avoided if possible.
“If you have to go down this path, make sure your bank gives you relief in the form of a rate cut as well.”
Savers will also see changes from today. The Big Four banks have all hiked their key savings accounts, with most increasing by 0.25 per cent.
The two exceptions are CBA’s GoalSaver, which has increased by just 0.15 per cent, and Westpac’s Spend&Save account for young adults, which has increased by 0.35 per cent.
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