Westpac, NAB and ANZ have followed CBA in announcing they will pass on the RBA’s 0.25 cash rate hike in full to their variable borrowers.
All four big banks’ variable mortgage increases will take effect on 9 October.
This announcement seals the fate of big bank rates starting with a 5, with Westpac hiking its lowest variable rate from 5.99% to 6.24%.
The other three majors had lifted their rates above the 6% barrier following previous hikes.
Big four banks’ lowest rates, effective 9 October | |||
|---|---|---|---|
Old rate from | New rate from | Change | |
CBA | 6.09% | 6.34% | +0.25 |
Westpac | 5.99% | 6.24% | +0.25 |
NAB | 6.04% - 6.79% | 6.29% - 7.04% | +0.25 |
ANZ | 6.25% | 6.50% | +0.25 |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
What have the big banks announced for savers?
CBA, NAB and ANZ have not yet announced any increases to their savings rates.
Westpac has said it will hike the bonus rate on its Life account to a maximum ongoing savings rate of 5.25%.
However, its Spend&Save account, available for those aged 18 - 40, will rise by just 0.20 percentage points to 5.95%.
The bank has not announced changes to its eSaver account.
Westpac savings rate changes, effective 9 October | ||
|---|---|---|
Max rate (if monthly conditions met) | Base rate (if conditions not met) | |
Life (all adults) | +0.25 to 5.25% | No change, 0.10% |
Life Spend&Save (ages 18 - 40) | +0.20 to 5.95% | No change, 0.10% |
Bump | +0.25 to 5.30% | No change, 1.75% |
eSaver | Not announced | |
Source: Canstar. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
Canstar’s Data Insights Director, Sally Tindall, says, “Next Friday, millions of Australian home loan customers will see their mortgage rate jump up, once again, as a result of this week’s RBA rate hike.”
“This is going to be brutal for some borrowers who are lugging around super-sized debts attached to rates that could soon easily start with a 7.
“One thing to bear in mind as a borrower, is that it’s not all going to happen at once. Yes, your big bank will start charging you the higher rate from next Friday, but it will give you a lot more time to work out how you’re going to afford the increase in repayments.
“The banks will notify you in writing at least 20 days before the new amount is debited, however, in reality, most give their customers a two-to-three-month period before the higher amount gets withdrawn from their bank accounts.
“While Westpac has been brave enough to tell savers what it’s doing for them on the back of this rate hike, it has missed a golden opportunity to stake its claim as the first bank to offer up an ongoing savings rate of 6 per cent or more in over 10 years.
“This suggests that, even when on the chase for new, fresh-faced customers, the bank has a ceiling on how high it can go, and this appears to be, at least for now, just below 6 per cent.”
