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CBA, ANZ, NAB, Westpac & other banks increase home loan interest rates after RBA hike
06 May 2022
The Reserve Bank of Australia (RBA) has hiked the cash rate for the first time in more than a decade, and banks are expected to begin raising their interest rates in turn. How have the big four and other banks responded?
After months of speculation about when rates would rise, the RBA raised the cash rate by 25 basis points to 0.35% at its May meeting, meaning Aussies could see their home loan repayments increase in the days, weeks and months to come as lenders respond.
“It won’t take long for borrowers to see their rates move with the expectation lenders will increase variable rates within days,” Canstar finance expert Steve Mickenbecker said.
Compare Current Home Loan Rates
All of the big four banks have now announced they will be passing on the cash rate increase in full to variable rate home loan customers, but only two have made any changes to their savings rates so far. (Note: Home loan rate changes are often expressed in ‘basis points’ – read our explainer to find out about how basis points work.) And you can read our round up on what changes the big banks and other providers have made for savings and term deposit customers).
CBA home loan interest rate increase
The Commonwealth Bank of Australia (CBA) was the first of the big four banks to announce a change to its variable rates following the cash rate increase. It will match the RBA’s increase.
In a statement, Australia’s biggest mortgage lender said: “In light of the Reserve Bank of Australia’s (RBA) cash rate decision, CBA will increase home loan variable interest rates by 0.25% p.a.” These rate increases will take effect on 20 May, 2022.
Canstar has calculated what this rate change would mean for CBA’s home loan rates and monthly repayments based on a hypothetical loan.
← Scroll to view →
| Current rate | New rate | Increase in monthly repayment |
|
|---|---|---|---|
| Standard variable (max LVR 95%) |
4.55% (comparison rate 4.70%) |
4.80% | $75 |
| Package standard variable (max LVR 95%) |
3.85% (comparison rate 4.27%) |
4.10% | $72 |
| Lowest variable rate (max LVR 70%) |
2.19% (comparison rate 2.20%) |
2.44% | $64 |
Source: www.canstar.com.au – 4/05/2022. Based on current owner-occupier variable rates available for a loan amount of $500,000, any LVR and principal & interest repayments. Rate changes based on announcements made by each major bank following the cash rate increase announced on 3 May 2022. Monthly repayment calculations based on a loan amount of $500,000 repaid over 30 years using principal & interest repayments. Please note: Comparison rates for ‘new rates’ are yet to be advised.
ANZ home loan interest rate increase
ANZ announced it will also pass on the cash rate increase in full, lifting variable interest home loan rates by 25 basis points. All variable rate changes will be effective from Friday 13 May, 2022, the bank has said.
Canstar has calculated what this rate change would mean for ANZ’s home loan rates and monthly repayments based on a hypothetical $500,000 loan.
← Scroll to view →
| Current rate | New rate | Increase in monthly repayment |
|
|---|---|---|---|
| Standard variable | 4.39% (comparison rate 4.39%) |
4.64% | $74 |
| Discounted standard variable (max LVR 80%) |
2.99% (comparison rate 2.99%) |
3.24% | $68 |
| Lowest variable rate (max LVR 70%) |
2.19% (comparison rate 2.20%) |
2.44% | $64 |
Source: www.canstar.com.au – 4/05/2022. Based on current owner occupier variable rates available for a loan amount of $500,000, any LVR and principal & interest repayments. Rate changes based on announcements made by each major bank following the cash rate increase announced on 3 May 2022. Monthly repayment calculations based on a loan amount of $500,000 repaid over 30 years using principal & interest repayments. Please note: Comparison rates for ‘new rates’ are yet to be advised.
NAB interest rate increase
The last of the major banks to make a move, NAB announced changes across its home loan and savings products. It said its standard variable home loan will increase by 25 basis points. Changes will be effective from 13 May, 2022.
Canstar has calculated what this rate change would mean for NAB’s home loan rates and monthly repayments based on a hypothetical $500,000 loan.
← Scroll to view →
| Current rate | New rate | Increase in monthly repayment |
|
|---|---|---|---|
| Standard variable (max LVR 95%) |
4.52%% (comparison rate 4.65%) |
4.77% | $75 |
| Package standard variable (max LVR 95%) |
3.67% (comparison rate 4.08%) |
3.92% | $71 |
| Lowest variable rate (max LVR 80%) |
2.19% (comparison rate 2.23%) |
2.44% | $64 |
Source: www.canstar.com.au – 4/05/2022. Based on current owner occupier variable rates available for a loan amount of $500,000, any LVR and principal & interest repayments. Rate changes based on announcements made by each major bank following the cash rate increase announced on 3 May 2022. Monthly repayment calculations based on a loan amount of $500,000 repaid over 30 years using principal & interest repayments. Please note: Comparison rates for ‘new rates’ are yet to be advised.
Westpac interest rate increase
Westpac has said it will increase home loan variable interest rates by 25 basis points for new and existing customers, effective from 17 May, 2022.
Canstar has calculated what this rate change would mean for Westpac’s home loan rates and monthly repayments based on a hypothetical $500,000 loan.
← Scroll to view →
| Current rate | New rate | Increase in monthly repayment |
|
|---|---|---|---|
| Standard variable (max LVR 70%) |
4.48%% (comparison rate 4.62%) |
4.73% | $75 |
| Package standard variable (max LVR 70%) |
3.19% (comparison rate 3.60%) |
3.44% | $69 |
| Lowest variable rate (max LVR 70%) |
2.09% (comparison rate 2.10%) |
2.34% | $63 |
Source: www.canstar.com.au – 4/05/2022. Based on current owner occupier variable rates available for a loan amount of $500,000, any LVR and principal & interest repayments. Rate changes based on announcements made by each major bank following the cash rate increase announced on 3 May 2022. Monthly repayment calculations based on a loan amount of $500,000 repaid over 30 years using principal & interest repayments. Please note: Comparison rates for ‘new rates’ are yet to be advised.
Owner occupied
20% min deposit
Redraw facility
Owner occupied
10% min deposit
Redraw facility
Owner occupied
20% min deposit
Redraw facility
Which other lenders are increasing home loan rates?
Beyond the major banks, it’s likely most other lenders are also working behind the scenes to prepare for interest rate increases for their variable home loan customers. Here’s a running list of those who have already announced rate hikes, which we will update as banks and lenders continue to announce rate hikes in the coming days:
AMP
AMP has said that it will increase home loan variable interest rates by 25 basis points for new customers from 13 May, 2022 and for existing customers from 16 May, 2022.
Arab Bank
Arab Bank has said that it will increase home loan variable interest rates by 25 basis points from 13 May, 2022.
Athena
Non-bank lender Athena has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 5 May, 2022.
Bank Australia
Bank Australia has said that it will increase home loan variable interest rates by 25 basis points from 25 May, 2022.
Bank of Melbourne
Bank of Melbourne has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers from 17 May, 2022.
Bank of Queensland
Bank of Queensland has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 13 May, 2022.
BankSA
BankSA has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers from 17 May, 2022.
Bankwest
Bankwest has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers, with the change effective from 18 May, 2022.
Bendigo and Adelaide Bank
Bendigo and Adelaide Bank has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 16 May, 2022.
Citi
Citi has said that it will increase home loan variable interest rates by 25 basis points from 13 May, 2022.
Great Southern Bank
Great Southern Bank has said that it will increase home loan variable interest rates by 25 basis points from 12 May, 2022.
Greater Bank
Greater Bank has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 10 May, 2022.
Horizon Bank
Horizon Bank has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 4 May, 2022.
HSBC
HSBC has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 23 May, 2022.
ING
ING Australia has announced it will increase its variable residential home loan interest rates by 25 basis points for new and existing customers, effective from 10 May, 2022. In a statement is said any customer “concerned about their ability to repay their home loan is encouraged to reach out ING as soon as possible so the bank can work with them to find a solution”.
Macquarie Bank
Macquarie Bank has said that it will increase its variable home loan interest rates by 25 basis points, with the change effective from 13 May, 2022.
ME Bank
ME Bank has said that it will increase its variable home loan interest rates by 25 basis points, with the change effective from 13 May, 2022. In a statement, the bank said that “if customers are having trouble making loan repayments, we encourage them to contact our Customer Assistance Team so we can tailor a financial solution that’s right for them.”
Newcastle Permanent
Newcastle Permanent has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers, with the change effective from 18 May, 2022.
RACQ Bank
RACQ Bank has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers, with the change effective from 17 May, 2022.
RAMS
RAMS has said that it will increase its home loan variable interest rates by 25 basis points for new and existing customers, with the change effective from 17 May, 2022.
St. George Bank
St. George Bank has said that it will increase home loan variable interest rates by 25 basis points for new and existing customers, with the change effective from 17 May, 2022.
Suncorp
Suncorp has said that it will increase its home loan variable interest rates by 25 basis points, with the change effective from 18 May, 2022.
Virgin Money
Virgin Money has said that it will increase home loan variable interest rates by 25 basis points, with the change effective from 13 May, 2022.
This article was reviewed by our Sub Editor Jacqueline Belesky before it was updated, as part of our fact-checking process.
Owner occupied
20% min deposit
Redraw facility
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