September cash rate hike: ANZ, CBA, NAB & Westpac respond to RBA decision

The Reserve Bank of Australia (RBA) has raised the cash rate for the fifth time in as many months, and it is expected that Commonwealth Bank, ANZ, NAB and Westpac, otherwise known as the big four banks, will all increase their variable rate home loans in line with the cash rate call. We’re keeping track of how these and other lenders respond, as well as what this could mean for your home loan and monthly repayments. Article last updated Monday 12 September, 2.30pm AEST.

At its latest monthly meeting, held on Tuesday 6 September, the RBA raised the cash rate by 50 basis points to 2.35%. This decision marks the fifth cash rate hike in as many months, and those weary of monthly mortgage pain are unlikely to see relief for some time yet, with the RBA having earlier indicated that rates will likely continue rising until at least the end of 2022.

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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 been relatively quick to pass on cash rate hikes in full to their customers after the RBA’s announcements. By contrast, they were slower to react to the August cash rate hike, with their hesitancy perhaps due to the fact that none wanted to be seen as the first to raise rates.

NAB was the first of the big four banks to raise rates following the September cash rate hike, announcing an increase to variable rates on Friday afternoon, followed soon after by ANZ and then by Commonwealth Bank. Westpac was the last of the big four to move, on Monday morning. We’re also keeping an eye on any changes the big four and other banks make for savings and term deposit customers.

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 Monday 12 September, 2.30pm AEST. 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 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 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 0.50 percentage points (pps), or in other words 50 basis points, from Friday 16 September 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 also announced an increase to its variable interest rates home loans of 0.50 percentage points, effective Friday 16 September 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 a September home loan rate hike, telling customers that it will increase home loan variable rates by 0.50 percentage points from September 16.

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 0.50 percentage points, from Tuesday 20 September 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 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 →

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 September’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.

Adelaide Bank

Adelaide Bank has announced it will increase its variable home loan interest rates by 50 basis points, effective 16 September 2022. This means owner-occupiers on a $500,000 home loan with 80% LVR on the lender’s SmartSaver P&I home loan could see their interest repayments increase by around $143 per month. Since 1 May 2022, before the current round of cash rate rises, customers on this home loan product may have seen their repayments go up by a cumulative total of $584 per month.

Aussie

Aussie has said it will increase its variable home loan interest rates by 50 basis points, with the changes coming into effect from 12 September 2022. This means that owner-occupiers on a $500,000 home loan with 80% LVR on the bank’s Select Basic Variable product could see their interest repayments increase by around $143 per month. Since 1 May 2022, before the current round of cash rate rises, customers on this home loan product may have seen their repayments go up by a cumulative total of $503 per month.

Auswide

Auswide has announced it will increase its variable home loan interest rates by 50 basis points, effective 20 September 2022. This means owner-occupiers on a $500,000 home loan with 80% LVR on the lender’s Basic home loan could see their interest repayments increase by around $146 per month. Since 1 May 2022, before the current round of cash rate rises, customers on this home loan product may have seen their repayments go up by a cumulative total of $609 per month.

Source: www.canstar.com.au. Last updated Monday 12 September, 2.30pm 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 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: Canstar.