Yahoo Finance CBA, ANZ, NAB and Westpac hit customers with fresh $81 expense
Millions of Aussie mortgage holders will be paying more for their monthly home loans repayments after CBA, ANZ, NAB and Westpac passed on yesterday's Reserve Bank (RBA) hike to customers.
The Big Four banks made the announcements quickly after the RBA decision, which saw the central bank raise the cash rate to 3.1 per cent - the highest it’s been in over a decade.
This was the eighth hike mortgage holders have been hit with in as many months, with some Aussies now paying thousands of dollars more per month on their mortgage repayments.
Also read: RBA apologises for interest rate hikes: ‘Sorry you listened to us’
Also read: RBA told to ‘keep hiking’ interest rates
Also read: RBA rate hikes slash homebuyer budgets by $214,000
The change means that someone with a $500,000 loan, with 25 years remaining, on a standard variable rate will be paying up to an extra $81 per month.
Here’s what changes the banks have made, according to data from RateCity.com.au.
CBA variable rates for owner-occupiers – effective 16 December
Rate type | Old rate | New rate | Increase in repayments $500K | |
Basic rate (70% LVR) | 4.62% | 4.87% | $72 | |
Discounted variable rate | 4.57% - 6.24% | 4.82% - 6.49% | $72 - $77 | |
Standard variable rate | 7.30% | 7.55% | $81 |
Westpac variable rates for owner-occupiers – effective 20 December
Rate type | Old rate | New rate | Increase in repayments, $500K |
Lowest variable | 4.49%for 2yrs then 4.89% | 4.74%for 2 yrs then 5.14% | $71 |
Discounted variable rate | 5.94% | 6.19% | $76 |
Standard variable rate | 7.23% | 7.48% | $81 |
NAB variable rates for owner-occupiers – effective 16 December
Rate type | Old rate | New rate | Increase in repayments, $500K |
Lowest variable | 4.74% | 4.99% | $72 |
Discounted variable rate | 6.42% | 6.67% | $78 |
Standard variable rate | 7.27% | 7.52% | $81 |
ANZ variable rates for owner-occupiers – effective 16 December
Rate type | Old rate | New rate | Increase in repayments, $500K |
Lowest variable | 4.59% | 4.84% | $72 |
Discounted variable rate | 5.74% | 5.99% | $76 |
Index rate | 7.14% | 7.39% | $80 |
RateCity research director Sally Tindall said the latest rate hike may be the final nail in the coffin for some borrowers.
“Borrowers on the blunt end of this rate hike will be bracing for more rate pain when this latest increase hits their bank accounts,” Tindall said.
“While some homeowners will be able to take this eighth rate hike on the chin, others will be wondering where on earth the money will come from.
“If you don’t know how the budget is going to add up, send out an SOS as soon as you can. The earlier you put your hand up for help, the more options you’re likely to have.”
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