The Reserve Bank of Australia (RBA) raised the cash rate again, with the big four banks – Commonwealth Bank, Westpac, NAB and ANZ – in turn announcing increases in their variable mortgage rates. We’ll be tracking how this will affect rates from the big four banks, how other lenders have responded to this week’s RBA announcement, and what it could mean for your home loan rate and monthly repayments. The article was last updated on Wednesday, July 6, 7:50 p.m. AEST.
At its July monthly meeting, held yesterday, the RBA raised the policy rate by 50 basis points to 1.35%. The move marks the third cash rate hike in as many months, and the RBA having previously indicated that rates would continue to rise until at least the end of 2022.
Following the RBA’s announcement in June, each of Australia’s big four banks announced that they would pass on the entire increase in cash rates to their customers, and Australian borrowers may well be wondering how their monthly repayments will change after this latest cash rate hike, with the Big Four raising their rates again.
How did the big four banks react to the increase in interest rates?
All four big banks passed on the cash rate hike in full.
- Commonwealth Bank was the first of the big four banks to announce a rate hike, announcing on Wednesday morning that it would raise variable interest rates on home loans by 0.50 percentage points from July 15.
- ANZ followed on Wednesday afternoon, announcing that he will also raise variable interest rates on home loans by 0.50 percentage points from July 15.
- National Bank of Australia also announced a rate hike on Wednesday afternoon, saying variable interest rates on home loans would rise by 0.50 percentage points from July 15.
- Westpac was the latest of the Big Four to announce an interest rate hike, telling customers late Wednesday that its variable interest rates on home loans will increase by 0.50 percentage points for new and existing customers from July 20.
As well as tracking the movements of the big four, we’ll be watching the smaller home lenders, so keep an eye out for this article as we’ll update it in the coming days.
Readers, note that home loan rate changes are often expressed in terms of “basis points” – if you want to learn more, you can read our explainer on how basis points work.
Source: www.canstar.com.au. Last updated Wednesday, July 6, 6:30 p.m. AEST. Current rates based on variable homeowner rates on Canstar database for loan amount of $500,000, at 80% LVR with repayments of principal and interest. Monthly repayment calculations based on $500,000 loan repaid over a total of 30 years using principal and interest repayments. Lowest rates based on the lowest rate available for products that were also available before the May 2022 cash rate increase. Rates based on those available to new customers. Comparison rates calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the comparison rate disclaimer.
Commonwealth Bank home loan interest rate increases
CommBank was the first of the big four banks to announce a rate hike, telling customers on Wednesday morning that it would raise its variable interest rates on home loans by 0.50 percentage points (pps). The change will come into effect from July 15. The table below shows CommBank’s current standard and floating variable interest rate, along with its lowest floating rate and comparison rate for each, as well as the changes this rate hike could make to monthly repayments, and the potential overall change in monthly repayments. reimbursements since May 1, 2022.
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| Current rate | Announced increase | From | Monthly repayment increase | Switch to monthly repayment since May 1, 2022 | |
| standard-variable | 5.30% (comparison rate 5.44%) | 0.50 dpi | July 15th | $157 | $386 |
| package variable | 4.60% (comparison rate 5.00%) | 0.50 dpi | July 15th | $152 | $371 |
| Lowest variable rate | 2.89% (comparison rate 2.90%) | 0.50 dpi | July 15th | $136 | $294 |
ANZ Home Loan Interest Rates Rise
ANZ also reacted to the rise in cash rates, announcing on Wednesday afternoon that it will raise variable interest rates on home loans by 0.50 percentage points from July 15. lowest variable rate, and the comparison rate for each, as well as the changes this rate increase could bring to monthly repayments, and the potential overall evolution of monthly repayments since May 1, 2022.
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| Current rate | Announced increase | From | Monthly repayment increase | Switch to monthly repayment since May 1, 2022 | |
| standard-variable | 5.14% (comparison rate 5.14%) | 0.50 dpi | July 15th | $156 | $382 |
| Updated standard variable | 3.74% (comparison rate 3.74%) | 0.50 dpi | July 15th | $144 | $352 |
| Lowest variable rate | 3.04% (comparative rate 3.04%) | 0.50 dpi | July 15th | $138 | $335 |
NAB home loan interest rate increases
NAB reacted to the cash rate hike, announcing on Wednesday afternoon that it will raise variable interest rates on home loans by 0.50 percentage points starting July 15. rate, and the comparison rate for each, as well as the changes this rate increase could bring to monthly repayments, and the potential overall evolution of monthly repayments since May 1, 2022.
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| Current rate | Announced increase | From | Monthly repayment increase | Switch to monthly repayment since May 1, 2022 | |
| standard-variable | 5.27% (comparison rate 5.40%) | 0.50 dpi | July 15th | $157 | $385 |
| package variable | 4.42% (comparative rate 4.81%) | 0.50 dpi | July 15th | $150 | $367 |
| Lowest variable rate | 2.94% (comparison rate 2.98%) | 0.50 dpi | July 15th | $137 | $333 |
Westpac Home Loan Interest Rate Rises
Westpac was the latest of the big four banks to announce a rate hike in response to the RBA’s appeal, telling customers on Wednesday night that it would raise its variable interest rates on home loans by 0.50 bps. percentage (pps). The change will come into effect from July 20. The table below shows Westpac’s current standard and variable variable interest rate, along with its lowest variable rate and comparison rate for each, as well as any changes this rate hike could make to monthly repayments, and the potential overall change to the monthly rate. reimbursements since May 1, 2022.
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| Current rate | Announced increase | From | Monthly repayment increase | Switch to monthly repayment since May 1, 2022 | |
| standard-variable | 5.33% (comparison rate 5.47%) | 0.50 dpi | July 20 | $157 | $386 |
| package variable | 4.04% (comparative rate 4.43%) | 0.50 dpi | July 20 | $147 | $358 |
| Lowest variable rate | 3.14% (comparative rate 3.15%) | 0.50 dpi | July 20 | $139 | $388 |
What could the average Australian home loan look like after July’s cash rate hike?
Canstar analyzed the numbers based on the average homeowner variable interest rate on our database at the time of writing and found that:
- Borrowers with a $500,000 home loan can expect to see their monthly repayment increase by $144.
- Borrowers with a Home loan of $750,000 can expect to see their monthly repayment increase by $216.
- Borrowers with a $1,000,000 home loan can expect to see their monthly repayment increase by $288.
How did other lenders react to the RBA announcement?
Outside of the big four banks, it is likely that most other home lenders will pass on July’s RBA cash rate hike in one form or another to their home lending customers, as was the case in the days and weeks since last month’s decision. We’ll be following the moves of smaller lenders and keeping you updated as these other players announce their plans.
Macquarie Bank has announced that it will raise its variable interest rates on home loans by 50 basis pointswith the change effective July 14, 2022. This means homeowners on a $500,000 home loan with 80% LVR on the bank’s base home loan product could see their interest payments increase approximately $137 per month.
Suncorp Bank
Suncorp Bank announced that it would increase its variable interest rates by 50 basis points for home loan customers, effective July 15, 2022. A homeowner customer with a $500,000 home loan on the bank’s Back to Basics Variable product (70.01 – 80% LVR) could see their repayments d Interest will increase by around $136 per month due to this rate change, according to Canstar data.
Source: www.canstar.com.au. Last updated Wednesday, July 6, 7:50 p.m. AEST. Current rates based on variable homeowner rates on Canstar database for loan amount of $500,000, at 80% LVR and with repayments of principal and interest. Monthly repayment calculations based on $500,000 loan repaid over a total of 30 years using principal and interest repayments. Lowest rates based on the lowest rate available for products that were also available before the July 2022 cash rate increase. Rates based on those available to new customers. Comparison rates calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the comparison rate disclaimer.
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