CBA, NAB, and ANZ customers with variable home loans have already seen their interest rates rise by 0.25 percentage points late last week, while rates go up for Westpac variable mortgage customers’ from tomorrow, as the Reserve Bank’s November hike kicks in.
Variable rate borrowers have experience rates rises of 2.75 percentage points since the RBA started hiking rates in May, taking the average existing variable owner-occupier rate to roughly 5.61%.
According to RateCity.com.au analysis, 36 lenders have so far announced their RBA November variable rate hikes, with 4.19% expected to be the lowest variable rate from lenders that have announced the November rate changes.
As the result of the RBA hikes, someone with a $500,000, 25-year loan before the rate hikes began in May will need to fork out an additional $760 a month to their lender.
Below is the big four banks’ lowest advertised variable rates:
|
Bank
|
Lowest variable
|
|---|---|
|
CBA
|
4.69%
|
|
Westpac
|
4.49% for 2yrs then 4.89%
|
|
NAB
|
4.74%
|
|
ANZ
|
4.69%
|
Notes: rates are for owner-occupiers paying principal and interest. LVR requirements apply on some rates. Westpac rates effective November 15.
“This further tightening of the screws will start to bite for some families,” said RateCity.com.au research director Sally Tindall (pictured above).”
“While the majority of Australian borrowers will be charged additional interest on their home loan from today, it’s going to take another two months or so before this extra money comes out of their bank accounts,” Tindall said.
“If you think your budget is unlikely to hold up against this latest rate hike, don’t put your head in the sand, use this extra time to prepare for higher repayments. If you know in advance you won’t be able to make ends meet, call your bank now for help. The National Debt Helpline is also a fantastic resource that can put you in touch with a free, independent financial counsellor.”
