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Mortgage rates to increase $273 today and there’s more to come

Australian $100 notes stacked on top of each other and an aerial view of an Australian suburb to represent higher mortgage payments.
Mortgage holders are starting to get hit by the RBA interest rates hikes. (Source: Getty)

CBA, NAB and ANZ customers are facing increases of 0.50 percentage points on their variable mortgage rates from today, following the RBA’s July double rate hike, with Westpac rates increasing from next Wednesday.

As a result, the average variable borrower will see their rate rise by 1.25 percentage points since the start of May.

Analysis from found a borrower with a $500,000 mortgage in May, with 25 years remaining, had seen repayments rise by an estimated $333 in total across the three hikes.

While variable-rate borrowers with loans with CBA, NAB and ANZ will be charged a higher interest rate from today, their monthly repayments will actually take weeks to rise.

In fact, many variable customers are only now seeing an increase in their monthly repayments as a result of the first hike back in May.

This is because banks typically give customers a minimum of 20-32 days’ notice before increasing their monthly repayments, despite the fact customers are being charged the higher rate from the effective date.

Even then, the increase to their monthly repayment might not take effect for another few weeks, depending on when they are due.

Increase in monthly repayments for the average variable rate customer

Loan size

Increase in repayments (July)

Total increaseMay + June + July










$1 million




Source: Based on an owner-occupier paying principal and interest with 25 years remaining. Starting rate is the RBA average existing owner-occupier variable rate of 2.86% at the start of May.

Here are the Big Four banks’ minimum notice periods for rate rises for principal and interest customers:

  • CBA: at least 20 days’ notice from the date of the customer's notification letter

  • Westpac: at least 30 days’ notice from the date of letter

  • NAB: at least 32 days’ notice from the date of letter

  • ANZ: at least 30 days’ notice from the date of letter

“The RBA’s rapid-fire rate hikes have rattled consumer sentiment for months,” RateCity research director Sally Tindall said.

“Part of this could be because homeowners have only just started paying extra on their mortgage as a result of the first hike back in May.

The latest ABS retail spending data for May recorded a monthly rise of 0.9 per cent, up 10.4 per cent year-on-year, however, NAB is now predicting a slight drop in June.

“While it's great to see the banks giving their customers plenty of notice, any borrowers with their heads deliberately in the sand might get a shock when the higher mortgage repayments start coming out of their bank accounts,” Tindall said.

“If you’ve got a variable mortgage, pay close attention to the letters and emails your bank sends you.

“They should have your new mortgage repayments clearly listed, and the effective date.”

Tindall said customers who had set up a direct debit should make sure they had enough extra cash in their accounts to adjust to the increased payments.

“We expect the new lowest rate to be 2.84 per cent once all the hikes are announced so, if you suspect you’re overpaying, then now is the time to refinance before rates keep climbing,” she said.

Big Four bank home loan rates – post-July hike


Lowest variable rate

Discounted variable rate

Standard variable rate






3.14% for 2 yrs then 3.54%











Source: Notes: Home loan rates are for owner-occupiers paying principal and interest, LVR restrictions may apply. CBA, NAB, ANZ rates effective 15 July, Westpac rates effective 20 July.

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