A number of banks have increased their home loan rates, following the Reserve Bank’s decision to hike the cash rate by 25 basis points.
On June 6, the RBA hiked rates for the 12th time since May 2022, taking the cash rate to 4.1%, as it continues its hawkish fight to curb inflation.
Below is a breakdown of how the big banks have responded to the RBA’s latest cash rate decision.
Commonwealth Bank
CBA said it will lift its home loan variable interest rates by 0.25% pa, effective June 16.
The big bank said it is also making changes to its fixed-rate home loans, including reductions to its four-year and five-year fixed rate home loan by as much as 0.4% pa, also effective June 16.
“These options may appeal to customers seeking to manage their future home loan repayments while cost-of-living pressures are rising,” said Angus Sullivan, CBA group executive of retail banking.
“We know Australians are having to make tough choices when managing their money and we have a number of solutions available for customers who are experiencing hardship.
“We encourage any customer who is worried or experiencing financial difficulty to contact us by messaging us in the CommBank app as soon as possible, so they can be connected with the specialist to help find a solution that’s right for them.”
ANZ’s variable interest home loan rates will rise by 0.25% pa, from June 16. The bank said the 0.25% pa change to variable home loan interest rates will raise monthly repayments by $69 on a variable home loan of $450,000 for an owner-occupier paying principal and interest.
“We know rate changes affect customers differently,” said Maile Carnegie, ANZ group executive Australia retail. “Our team is trained to support customers and their specific circumstances.”
Westpac announced a 0.25% per annum rise to its variable home loan interest rates, for new and existing home loans, effective June 20.
“We understand interest rate increases put more pressure on household budgets,” said Chris de Bruin, Westpac chief executive consumer and business banking. “The majority of our customers are managing okay, but we know with each rate change it’s getting more challenging.
“We’re reaching out to some customers who may need additional support and have competitive rates available for those rolling off fixed loans to make the change easier. For customers in financial difficulty, we are here to help and encourage them to call us early if they’re concerned.”
National Australia Bank
NAB will pass the 0.25% pa RBA hike to its variable home loan customers, effective June 16.
Rachel Slade (pictured above left), NAB group executive for personal banking, said the bank was proactively contacting customers who might need additional support.
“Each rate increase since May last year has been incrementally challenging for Australian households,” Slade said. “We know from speaking with our customers that most are in good shape, however, there are some who need our additional support. We’re proactively reaching out to our customers to offer help and have a range of options available to assist them through the rising cost of living.”
How about the other banks?
Macquarie Bank said it will increase variable home loan reference rates by 0.25% pa, effective June 23.
For Bendigo Bank home loan customers on a variable rate loan, the interest rate will rise by 0.25% pa by June 20.
Richard Fennell (pictured above center), chief customer officer for consumer banking at Bendigo and Adelaide Bank, said the lender understands that the RBA’s decision to hike rates will put increased pressure on borrowers.
“Bendigo and Adelaide Bank has always, and will continue to, carefully consider the impact rate rises have on all of our customers,” Fennell said. “While our customers are generally in good shape, we have a team standing by to help with any concerns they may have.”
ING Australia will lift all variable home loan rates by 0.25% per annum for new and existing customers, effective June 14.
Suncorp Bank’s variable rate term home loans will rise by 0.25% per annum from June 16.
Bankwest said it will increase its standard variable rate for new and existing customers by 0.25% pa
Auswide Bank’s variable loan interest rates will increase its variable interest rates on new and existing home, business, and personal loans will increase by 0.25% pa, from June 15.
Martin Barrett (pictured above right), Auswide Bank managing director, said the bank’s customer service teams are available to support any borrowers in need.
AMP Bank lifted its interest rate for variable rate home loans by 0.25% pa starting June 9 for new customers and June 12 for existing customers.
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