Rise in cash rates in August: how will the big four banks react?



The Reserve Bank of Australia (RBA) has raised the cash rate for the fourth time in as many months, with the big four banks – ANZ, Commonwealth Bank, NAB and Westpac – likely to raise their variable lending rates in turn immovable. We’ll be tracking the impact of the latest cash rate hike on rates at the big four banks, as well as the reaction of other home lenders, and what it might mean for your home loan rate and monthly repayments. The article was last updated on Wednesday, August 3, 9:00 a.m. AEST.




At its August monthly meeting, held today, the RBA raised the policy rate by 50 basis points to 1.85%. The move marks the fourth cash rate hike in as many months, and those weary of monthly mortgage pain are unlikely to see relief for some time, with the RBA previously indicating rates would continue to rise until further notice. at least the end of 2022.








How did the big four banks react to the increase in interest rates?




Following the RBA’s announcement in July, each of Australia’s big four banks announced that they would pass on the entire increase in cash rates to their customers. So far, none of the big four banks have announced an increase in their variable mortgage rates following today’s decision, but we’ll keep an eye on ANZ, CBA, NAB and Westpac, and update update this article as soon as they make a move on variable mortgage rates.




In addition to following the movements of the Big Four, we will be watching smaller mortgage lenders as they announce changes to their rates following the RBA hike in August. Canstar will also be tracking any changes the big four bring to savings account and time deposit customers, who may well see an increase in their savings rates following the latest central bank cash rate call.




Readers, note that home loan rate changes are often expressed in terms of “basis points” – if you want to learn more, you can read our explainer on how basis points work.




Source: www.canstar.com.au. Last updated Wednesday, August 3, 9:00 a.m. AEST. Current rates in the tables below are based on variable homeowner rates on Canstar database for a loan amount of $500,000, at 80% LVR with repayments of principal and interest. Monthly repayment calculations based on $500,000 loan repaid over a total of 30 years using principal and interest repayments. Lowest rates based on the lowest rates available to 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 with a loan term of 25 years. Read the comparison rate disclaimer.




ANZ Home Loan Interest Rates Rise




ANZ has yet to announce any changes to its variable interest rates on home loans, but as soon as it does we will update the table below to reflect what its variable rates on loans might look like. real estate. Please note that the table currently shows the amount of home loan repayments likely to have increased since May 1, before the start of the current round of cash rate hikes. We will update this number when ANZ announces its decision, to reflect what repayments might look like after a rate hike in August.




Also note that the table below shows ANZ’s current standard floating interest rate and discounted standard floating interest rate, along with its lowest floating rate and comparison rate for each.




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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 5.64% (comparison rate 5.64%) To be determined $382
Updated standard variable 4.24% (comparative rate 4.24%) To be determined $352
Lowest variable rate 3.29% (comparison rate 3.30%) To be determined $266












Commonwealth Bank home loan interest rate increases




CommBank has yet to announce any changes to its variable interest rates on home loans, but as soon as it does, we’ll update the table below to reflect what its variable rates on loans might look like. real estate. Please note that the table currently shows the amount of home loan repayments likely to have increased since May 1, before the start of the current round of cash rate hikes. We’ll update this number when CommBank announces its decision, to reflect what repayments might look like after a rate hike in August.




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




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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 5.80% (comparison rate 5.94%) To be determined $386
package variable 5.10% (comparison rate 5.50%) To be determined $371
Lowest variable rate 3.39% (comparison rate 3.40%) To be determined $294




NAB home loan interest rate increases




NAB has yet to announce any changes to its variable interest rates on home loans, but as soon as it does, we will update the table below to reflect what its variable rates on loans might look like. real estate. Please note that the table currently shows the amount of home loan repayments likely to have increased since May 1, before the start of the current round of cash rate hikes. We’ll update this number when NAB announces its decision, to reflect what refunds might look like after a rate hike in August.




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




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




Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 5.77% (comparison rate 5.90%) To be determined $385
package variable 4.92% (comparison rate 5.31%) To be determined $367
Lowest variable rate 3.44% (comparison rate 3.64%) To be determined $333




Westpac Home Loan Interest Rate Rises




Westpac has yet to announce any changes to its variable interest rates on home loans, but as soon as it does, we’ll update the table below to reflect what its variable rates on loans might look like. real estate. Please note that the table currently shows the amount of home loan repayments likely to have increased since May 1, before the start of the current round of cash rate hikes. We’ll update that number when Westpac announces its decision, to reflect what refunds might look like after a rate hike in August.




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




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




Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 5.83% (comparison rate 5.97%) To be determined $386
package variable 4.54% (comparative rate 4.92%) To be determined $358
Lowest variable rate 3.64% (comparison rate 3.65%) To be determined $388




How did other lenders react to the RBA announcement?




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








Macquarie Bank has announced that it will increase its variable interest rates on home loans by 50 basis points, with the change effective from August 12, 2022. This means homeowners on a $500,000 home loan with 80% LVR on the bank’s base home loan product could see their interest payments increase by about $140 per month. Since May 1, 2022, before the current cash rate hike, customers of this home loan product may have seen their repayments increase by a cumulative total of $432 per month.




Source: www.canstar.com.au. Last Wednesday, August 3, 9:00 a.m. AEST. Current rates based on variable homeowner rates on Canstar database for $500,000 loan amount, at 80% LVR and with repayments of principal and interest. Monthly repayment calculations based on $500,000 loan repaid over a total of 30 years using principal and interest repayments. Lowest rates based on the lowest rate available to 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 with a loan term of 25 years. Read the comparison rate disclaimer.




Cover image source: Canstar.





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