ANZ has hiked variable home loan rates in response to the RBA

Source: Marlon Trottmann/Shutterstock.com.

ANZ has announced it will hike variable rate home loans in response to the RBA’s March cash rate increase, making mortgages more expensive still for variable rate borrowers after a series of hikes throughout 2022.

The Reserve Bank of Australia (RBA) announced this week, at its second meeting of the year, that it would raise the cash rate by 25 basis points, bringing it to 3.60%. Generally speaking, when the RBA raises the cash rate, banks and lenders are quick to follow, raising their own home loan variable interest rates.

ANZ is the latest of Australia’s big four banks to raise its home loan variable rates in response, announcing an increase on Thursday afternoon, to come into effect later this month. If you are an ANZ customer wondering how today’s interest rate rise might affect your home loan, Canstar Research crunched the numbers to find out how much more you could be paying each month.

ANZ home loan interest rate increases

ANZ has announced it will hike home loan variable rates for new and existing customers by 0.25% pa from 17 March. The below table shows how much more the average borrower on a variable rate loan of $500,000 might now expect to be paying per month, and also the total monthly amount that home loan repayments have increased (based on the assumptions you can find under the table) since 1 May 2022, before the current round of cash rate hikes began.

The table below shows ANZ’s current standard variable and discounted standard variable interest rate, as well as its basic variable rate and the comparison rate for each.

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	Current rate	Increase announced	Effective from	Increase to monthly repayment	Change to monthly repayment since 1 May 2022
Standard variable	7.64% (comparison rate 7.64%)	0.25% pa	17 March	$87	$1,130
Discounted standard variable	6.24% (comparison rate 6.24%)	0.25% pa	17 March	$82	$1,052
Basic variable rate	5.19% (comparison rate 5.20%)	0.25% pa	17 March	$78	$1,431

Source: www.canstar.com.au. Last updated Thursday March 9, 2.00pm AEDT. Current rates in the table are based on owner-occupier variable rates on Canstar’s database for a loan amount of $500,000, at an 80% loan-to-value ratio (LVR) with principal & interest repayments. Monthly repayment calculations based on a $500,000 loan repaid over a total of 30 years using principal & interest repayments. Lowest rates based on the lowest rates available for new customers from products that were also available before the May 2022 cash rate increase. Comparison rates calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the Comparison Rate Warning.

Cover image source: Marlon Trottmann/Shutterstock.com

This article was reviewed by our Editor-in-Chief Nina Tovey before it was updated, as part of our fact-checking process.

Alasdair Duncan

Content Editor

Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo Finance, The New Daily, The Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.

In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.

When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.