CBA, ANZ, NAB & Westpac have all passed on the RBA cash rate hike in full

The Reserve Bank of Australia (RBA) has raised the cash rate again, with all of the big four banks – Commonwealth Bank, Westpac, NAB and ANZ – announcing increases to their home loan variable rates in turn. We’ll keep track of how this will impact the big four banks’ rates, how other lenders have responded to this week’s RBA announcement, and what it could mean for your home loan rate and monthly repayments. Article last updated Tuesday 12 July, 12:30pm AEST.

At its monthly meeting for July, held on Tuesday, the RBA raised the cash rate by 50 basis points to 1.35%. This decision marks the third cash rate hike in as many months, with the RBA having earlier indicated that rates will continue rising until at least the end of 2022.

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Following the RBA’s June announcement, each of Australia’s big four banks announced they would be passing on the cash rate increase in full to their customers, and Aussie home loan 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 have the big four banks responded to the cash rate increase?

The big four banks have all passed on the cash rate hike in full.

• Commonwealth Bank was the first of the big four banks to announce a rate rise, announcing on the morning of Wednesday 6 July that it will increase variable home loan interest rates by 0.50 percentage points from 15 July.
• ANZ followed later that day, announcing it will also increase variable home loan interest rates by 0.50 percentage points from 15 July.
• National Australia Bank also announced a rate hike that same afternoon, saying its variable home loan interest rates will increase by 0.50 percentage points from 15 July.
• Westpac was the last of the big four to announce an interest rate hike, telling customers on Wednesday night that its variable home loan interest rates will increase by 0.50 percentage points for new and existing customers from 20 July.

As well as keeping track of the big four’s movements, we’ll be monitoring smaller home loan lenders, so keep an eye on this article as we update it through the coming days.

We’re also keeping track of any changes the big four make for savings and deposit customers, who may well see savings rates rise.

Readers, take note that home loan rate changes are often expressed in terms of ‘basis 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 Tuesday 12 July, 12:30pm AEST. Current rates based on owner-occupier variable rates on Canstar’s database for a loan amount of $500,000, at 80% 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 rate available from products that were also available before the May 2022 cash rate increase. Rates based on those available for new customers. Comparison rates calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the Comparison Rate Warning. 

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 will raise its home loan variable interest rates by 0.50 percentage points (pps). The change will come into effect from 15 July. The below table shows CommBank’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each, as well as the changes that this rate hike could make to monthly repayments, and the potential overall change to monthly repayments since 1 May 2022.

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ANZ home loan interest rate increases

ANZ has also responded to the cash rate hike, announcing on Wednesday afternoon that it will increase variable home loan interest rates by 0.50 percentage points from July 15. The below table shows ANZ’s current standard variable and discounted standard variable interest rate, as well as its lowest variable rate, and the comparison rate for each, as well as the changes that this rate hike could make to monthly repayments, and the potential overall change to monthly repayments since 1 May 2022.

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NAB home loan interest rate increases

NAB has responded to the cash rate hike, announcing on Wednesday afternoon that it will increase variable home loan interest rates by 0.50 percentage points from July 15. The below table shows NAB’s current standard variable and package variable interest rate, as well as its lowest variable rate, and the comparison rate for each, as well as the changes that this rate hike could make to monthly repayments, and the potential overall change to monthly repayments since 1 May 2022.

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

Westpac home loan interest rate increases

Westpac was the last of the big four banks to announce a rate hike in response to the RBA’s call, telling customers on Wednesday evening that it will raise its home loan variable interest rates by 0.50 percentage points. The change will come into effect from 20 July. The below table shows Westpac’s current standard variable and package variable interest rate, as well as its lowest variable rate and the comparison rate for each, as well as the changes that this rate hike could make to monthly repayments, and the potential overall change to monthly repayments since 1 May 2022.

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

How could the average Australian home loan look after the July cash rate hike?

Canstar crunched the numbers based on the average owner-occupier variable interest rate on our database at the time of writing, and found that:

• Borrowers with a $500,000 home loan might expect to see their monthly repayment go up by $144.
• Borrowers with a $750,000 home loan might expect to see their monthly repayment go up by $216.
• Borrowers with a $1,000,000 home loan might expect to see their monthly repayment go up by $288.

How have other lenders responded to the RBA’s announcement?

Outside of the big four banks, it’s likely most other home loan lenders will pass on July’s RBA cash rate hike in some form or another to their home loan customers, as was the case in the days and weeks following last month’s decision. We’ll be keeping track of the movements of smaller lenders, and will keep you updated as these other players announce their plans.

ING

ING has announced it will increase its variable home loan interest rates by 50 basis points, with the changes coming into effect from 12 July 2022. This means that owner-occupiers on a $500,000 home loan with 80% LVR on the bank’s Mortgage Simplifier home loan product could see their interest repayments increase by around $136 per month.

loans.com.au

Loans.com.au has increased its variable home loan interest rates by 50 basis points, with the changes coming into effect from 8 July 2022. This means owner-occupiers on a $500,000 home loan with 80% LVR on the lender’s Smart Booster Home Loan Intro 2 Yrs product could see their interest repayments increase by around $136 per month.

Source: www.canstar.com.au. Last updated Tuesday 12 July, 12:30pm AEST. Current rates based on owner-occupier variable rates on Canstar’s database for a loan amount of $500,000, at 80% LVR and 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 rate available from products that were also available before the July 2022 cash rate increase. Rates based on those available for new customers. Comparison rates calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the Comparison Rate Warning. 

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