CBA, Westpac, ANZ and NAB hit customers with rate hikes

CBA, Westpac, ANZ and NAB will pass on the May RBA rate rise to mortgage holders and some savers. (Source: Getty)

Millions of Aussie mortgage holders will be hit with higher repayments after CBA, Westpac, ANZ and NAB all announced they will pass on the Reserve Bank’s (RBA) 0.25 per cent increase in full.

This is the 11th interest rate hike mortgage holders have been dealt in the past year, with the cash rate now sitting at 3.85 per cent.

May’s increase means a borrower with a $500,000 loan with 25 years remaining will be paying an extra $78 per month.

• Also read: RBA rate hike: Bank’s urge Aussies to ‘reach out’

• Also read: Best home loan rates: Save $488 a month

• Also read: RBA hike: Aussies to pay $2,117 more per month

While all four major banks have hiked mortgage rates by the full 0.25 per cent, there are different increases on offer to savers.

RateCity research director Sally Tindall said Aussie savers shouldn’t assume their bank was passing on the RBA hikes in full.

“Check your rate and if it’s earning an ongoing rate of less than 4.5 per cent, then it could be time to switch,” Tindall said.

“Keen savers can get ongoing rates of 5 per cent, potentially higher once this latest hike filters through.”

CBA changes

CBA’s home loan and savings changes will come into effect from May 12. CBA has passed on the 0.25 per cent increase to its three main savings accounts.

• NetBank Saver 5-month introductory variable interest will increase by 0.25 per cent to 4.50 per cent

• Youthsaver with bonus interest rate will increase by 0.25 per cent to 4.50 per cent

• GoalSaver with bonus interest will increase by 0.25 per cent to 4.40 per cent

Westpac changes

Westpac’s home loan changes will come into effect from May 16, and its savings changes from May 12. Westpac has increased select savings accounts.

• Life will increase by 0.25 per cent to 4.50 per cent

• Spend&Save (ages 18-29) interest rate will increase by 0.30 per cent to 5.00 per cent

• eSaver introductory rate will increase by 0.25 per cent to 4.50 per cent for the first five months

ANZ changes

ANZ’s home loan changes will kick in from May 12, while its savings changes will be effective on May 11. ANZ is only passing on the 0.25 per cent increase to one savings account.

• Plus Save will increase by 0.25 per cent to 4.50 per cent

NAB changes

NAB’s home loan and savings changes will come into effect on May 12. NAB has passed on the 0.25 per cent hike to both of its savings accounts.

• Reward Saver will increase by 0.25 per cent to 4.50 per cent

• iSaver will increase to 0.25 per cent to 4.50 per cent for the first four months

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