Yahoo Finance Westpac, CBA, ANZ and NAB: Big banks reveal interest rates changes
All four of the big banks have decided to pass on the cash rate hike in full to their variable-rate-mortgage customers.
Westpac, Commonwealth Bank of Australia, ANZ and NAB have all increased variable mortgage rates by 0.25 per cent.
Yesterday, the Reserve Bank of Australia (RBA) lifted the cash rate by 0.25 percentage points to 0.35 per cent, marking the first official interest rate rise since 2010.
Also read: ‘Need a buffer’: RBA’s warning to 1.1 million Aussies
Also read: RBA rate rise: This is what will happen to your rent
For 1.1 million Australian mortgage holders, this is their first ever rate rise.
RateCity.com.au research director Sally Tindall was not surprised the big banks passed the rate rise on in its entirety.
“As expected, the big four banks have moved in unison and passed on the RBA hike in full to their millions of variable-home-loan customers,” Tindall said.
“While these hikes were expected, some customers will still be disappointed, particularly because both CBA and Westpac failed to pass on the last two cash rate cuts to their variable borrowers back in 2020.”
She said Australians with a home loan should now brace for more pain.
”This is only the beginning of a series of hikes ahead,” Tindall said.
CBA group executive, retail banking, Angus Sullivan said it would be looking to support customers through their first rate hike.
“We are here to help customers who have loans and are considering how repayments might change,” Sullivan said.
“Some options available to help our customers manage repayments include fixing or splitting loans or setting up an offset account.”
According to data from RateCity, this is how much your monthly repayments could rise if you’re on the average variable rate of 2.92 per cent with a loan of 25 years:
$500,000 loan - $65 a month
$750,000 loan - $98 a month
$1 million loan - $130 a month
Some banks pass rate hikes onto savers
Westpac and NAB have also passed on the rate hike to savings customers, although Tindall said only some of their savings accounts had increased by 0.25 percentage points.
“CBA and ANZ now have the chance to step up to the plate and pass on a rate hike to all of their savings customers, who’ve been on pitiful rates for far too long,” she said.
Tindall said savers should shop around to find a better deal if their bank wasn’t going to pass on the hike to savings customers.
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