December cash rate hike: the big four banks have raised their home loan interest rates

We're keeping track of how the big four banks respond to the cash rate rise

The Reserve Bank of Australia (RBA) has once again raised the cash rate this month, and the big four banks – ANZ, CommBank, NAB and Westpac – have all raised home loan variable rates in response. We’ve taken a look at what these interest rate calls could mean for your home loan and monthly repayments. Article last updated Wednesday 7 December at 8.00am AEDT.

At its last monthly meeting of the year, held on Tuesday 6 December, the RBA raised the cash rate by 25 basis points to 3.10%. This decision marks the eighth cash rate hike in as many months, with inflation figures over the Christmas period likely to determine whether the central bank will continue hiking rates in the new year, or hold.

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How have the big four banks responded to the cash rate increase?

For the past several months, Australia’s big four banks have passed on the RBA’s cash rate hike in full to home loan customers, and all four did so again in December.

Westpac was the first of the big four banks to hike their rates after the RBA’s December cash rate call, announcing on Tuesday afternoon that home loan variable interest rates will increase by 0.25% p.a. for new and existing customers, effective 20 December.
NAB announced next, telling borrowers that it will increase its standard variable home loan interest rate by 0.25% p.a, effective from 16 December.
ANZ was the next to announce on Tuesday afternoon, telling customers that it will increase home loan variable rates by 0.25% from 16 December.
CommBank was the last of the big four to announce on Tuesday afternoon, telling customers that its home loan variable rates will increase by 0.25% from 16 December.

Readers, take note that home loan rate changes are often expressed in terms of ‘basis points’ or ‘percentage points’ – if you’d like to know more, you can read our explainer to find out about how basis points work.

Source: www.canstar.com.au. Last updated Wednesday 7 December, 8.00am AEDT. Current rates in the tables below 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.

ANZ home loan interest rate increases

ANZ has announced that it will hike home loan variable rates for new and existing customers by 0.25% from December 16. 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 might have increased since 1 May 2022, before the current round of cash rate hikes began.

Also note that the table below shows ANZ’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each.

← Mobile/tablet users, scroll sideways to view full table →

	Current rate	Increase announced	Effective from	Increase to monthly repayment	Change to monthly repayment since 1 May 2022
Standard variable	7.14% (comparison rate 7.14%)	0.25 basis points	16 December	$84	$957
Discounted standard variable	7.74% (comparison rate 5.75%)	0.25 basis points	16 December	$80	$890
Lowest variable rate	4.69% (comparison rate 4.70%)	0.25 basis points	16 December	$76	$745

CommBank home loan interest rate increases

CommBank has announced that it will hike home loan variable rates for new and existing customers by 0.25% from December 16. 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 might have increased since 1 May 2022, before the current round of cash rate hikes began.

Also note that the table below shows CommBank’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each.

← Mobile/tablet users, scroll sideways to view full table →

	Current rate	Increase announced	Effective from	Increase to monthly repayment	Change to monthly repayment since 1 May 2022
Standard variable	7.30% (comparison rate 7.44%)	0.25 basis points	16 December	$85	$965
Package variable	4.67% (comparison rate 5.07%)	0.25 basis points	16 December	$76	$316
Lowest variable rate	4.72% (comparison rate 4.73%)	0.25 basis points	16 December	$76	$754

NAB home loan interest rate increases

NAB has announced that it will hike home loan variable rates for new and existing customers by 0.25% from December 16. 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 might have increased since 1 May 2022, before the current round of cash rate hikes began.

Also note that the table below shows NAB’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each.

← Mobile/tablet users, scroll sideways to view full table →

	Current rate	Increase announced	Effective from	Increase to monthly repayment	Change to monthly repayment since 1 May 2022
Standard variable	7.27% (comparison rate 7.40%)	0.25 basis points	16 December	$85	$964
Package variable	6.42% (comparison rate 6.78%)	0.25 basis points	16 December	$82	$923
Lowest variable rate	4.74% (comparison rate 4.78%)	0.25 basis points	16 December	$76	$785

Westpac home loan interest rate increases

Westpac has announced that it will hike home loan variable rates for new and existing customers by 0.25% from December 20. 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 might have increased since 1 May 2022, before the current round of cash rate hikes began.

Also note that the table below shows Westpac’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each.

← Mobile/tablet users, scroll sideways to view full table →

	Current rate	Increase announced	Effective from	Increase to monthly repayment	Change to monthly repayment since 1 May 2022
Standard variable	7.33% (comparison rate 7.46%)	0.25 basis points	20 December	$85	$967
Package variable	6.04% (comparison rate 6.39%)	0.25 basis points	20 December	$81	$905
Lowest variable rate	4.99% (comparison rate 5.00%)	0.25 basis points	20 December	$77	$862