October cash rate hike: ANZ, CBA, NAB & Westpac have all raised home loan rates

The Reserve Bank of Australia (RBA) has once again raised the cash rate this month, and Commonwealth Bank, ANZ, NAB and Westpac, otherwise known as the big four, have all increased their variable rate home loans in line with the cash rate call. We’re taking a look at the big four’s interest rate calls and what they could mean for your home loan and monthly repayments. Article last updated Wednesday 5 October at 9.30am AEDT.

At its latest monthly meeting, held on Tuesday 4 October, the RBA raised the cash rate by 25 basis points to 2.60%. This decision marks the sixth cash rate hike in as many months, and though this rate rise is smaller than the 50 basis point rises we’ve seen in recent months, the RBA having earlier indicated that rates will likely still continue rising until at least the end of 2022.

Compare Current Home Loan Rates

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 they did so once again this month. NAB was the first of the big four banks to raise rates, announcing a 25 basis point hike on Tuesday afternoon, with Westpac following soon after ANZ and CommBank responded overnight, also raising their rates by the same amount. In the tables below, we have considered what these rate hikes could mean for your home loan.

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 5 October, 9.30am 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 increase variable interest rates across its Australian home loans by 0.25 percentage points from Friday 14 October 2022.

The table below shows both the increase to the current monthly repayment for a hypothetical borrower on an average variable rate loan of $500,000, as well as the total amount that home loan repayments may have increased for that borrower since May 1, before the current round of cash rate hikes.

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 →

CommBank home loan interest rate increases

CommBank has announced an increase to its variable interest rates home loans of 0.25 percentage points, effective Friday 14 October 2022.

The table below shows both the increase to the current monthly repayment for a hypothetical borrower on an average variable rate loan of $500,000, as well as the total amount that home loan repayments may have increased for that borrower since May 1, before the current round of cash rate hikes.

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 →

NAB home loan interest rate increases

NAB was the first of the big four banks to announce an October home loan rate hike, telling customers that it will increase variable rates by 0.25 percentage points from Friday 14 October 2022.

The table below shows both the increase to the current monthly repayment for a hypothetical borrower on an average variable rate loan of $500,000, as well as the total amount that home loan repayments may have increased for that borrower since May 1, before the current round of cash rate hikes.

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 →

Westpac home loan interest rate increases

Westpac has announced that it will increase variable interest rates across its Australian home loans by 0.25 percentage points, from Tuesday 18 October 2022.

The table below shows both the increase to the current monthly repayment for a hypothetical borrower on an average variable rate loan of $500,000, as well as the total amount that home loan repayments may have increased for that borrower since 1 May, before the current round of cash rate hikes.

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 →

Cover image source: Canstar.