Borrowing money

RBA cash rate hike: NAB, ANZ, CBA and Westpac hikes?

The Reserve Bank of Australia (RBA) raised the official exchange rate by 25 basis points to 2.85% at its November board meeting today. This is the seventh hike in cash rates this year, with hopes Australian borrowers may start to see some relief.

The RBA’s string of cash rate hikes continued this month as our country’s central bank continues its efforts to bring inflation under control. 2022 has seen the average variable rate mortgage become much more expensive in Australia.

In what could be potentially promising news for mortgage borrowers, economists at several major Australian banks have predicted that rate hikes are likely to come to a halt in the new year, which could provide some relief to borrowers.

For now, however, you may be wondering how the RBA’s November rate hike will affect your home loan. We’ve crunched the numbers to find out what your refunds might look like after today’s announcement, and we’ll also be watching how each of the big four banks respond to the latest cash rate call.

How could November’s cash rate hike affect your mortgage?

Over the past few months, Australian banks and lenders have largely passed on every rise in cash rates to their home loan customers, and it’s likely to happen again in November. With that in mind, Canstar crunched the numbers to determine how today’s rate hike might affect a hypothetical borrower’s monthly home loan repayments.

We looked at the extra amount a hypothetical mortgage borrower could spend each month after the current rate hike, as well as the total amount of monthly repayments that could have increased since April 2022, before the start of the current round of rate hikes. cash, when the average variable mortgage rate on the Canstar database was 2.98%.

The calculations below show how much more a borrower with a home loan of $500,000, $750,000 and $1,000,000 could expect to pay each month, assuming their mortgage is at an average variable rate and that its lender passed on each of this year’s cash rate hikes in full (and made no other rate changes).

How much more could a $500,000 home loan cost since April?

  • Increase in the rate of 25 percentage points: $79 more in monthly repayments and $809 in total since April.

How much more could a $750,000 home loan be since April?

  • Rate increase of 25 percentage points: $118 more in monthly repayments and $1,113 in total since April.

How much more could a $1,000,000 home loan cost since April?

  • Rate increase of 25 percentage points: $158 more in monthly repayments and $1,618 in total since April.

Source: www.canstar.com.au – 28/10/2022. Monthly repayment calculations based on a loan repaid using principal and interest repayments over a total loan term of 30 years at a loan-to-value ratio (LVR) of 80%. Repayment calculations Interest rate based on starting rate of 5.48% (average homeowner cash rate before May of 2.98% with May, June, July, August, September cash rate increases and October applied). Refunds rounded to the nearest whole dollar.

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

Over the past few months, the big four banks have been relatively quick to pass cash rate hikes on to their customers in full after the RBA announcements. NAB was the first of the Big Four to announce a home loan rate hike on Tuesday afternoon, and we’ll be keeping an eye out for the rest, to follow any increases they announce, as well as what it might mean for your home loan.

Readers, note that home loan rate changes are often expressed in terms of ‘basis points’ or ‘percentage points’ – if you want to know more, you can read our explainer on how basis points work .

Source: www.canstar.com.au. Last updated Tuesday, November 1, 4:30 p.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 it Compare rate warning.

NAB home loan interest rate increases

NAB was the first of the big four banks to announce a hike in variable rates for home loans, announcing on Tuesday afternoon that it will increase its standard variable rate for home loans by 0.25% from November 11. The table shows NAB’s current standard variable and flat interest rate variable, along with its lowest variable rate and comparison rate for each, and how much the average repayment can increase per month with the current rate hike.

It also shows how much more per month the average borrower could pay since May 1, 2022, before the start of the current round of interest rate hikes, taking into account the next interest rate hike.

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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 7.02% (comparison rate 7.15%) 0.25 basis points November 11th $84 $879
package variable 6.17% (6.54% comparison rate) 0.25 basis points November 11th $81 $841
Lowest variable rate 4.49% (comparative rate 4.53%) 0.25 basis points November 11th $75 $709

ANZ Home Loan Interest Rates Rise

ANZ has yet to announce whether it will raise variable rates on home loans, but we will update this table as soon as the bank makes its next interest rate call. The table shows ANZ’s current standard floating interest rate and discounted standard floating interest rate, as well as its lowest floating rate and comparison rate for each, and how much more per month the average borrower could pay since May 1, 2022, before the start of the current round of interest rate hikes.

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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 6.89% (comparison rate 6.89%) $789
Updated standard variable 5.49% (5.50% comparison rate) $731
Lowest variable rate 4.54% (comparative rate 4.55%) $624

Increase in interest rates for CommBank home loans

CommBank has yet to announce whether it will raise variable rates for home loans, but we will update this table as soon as the bank makes its next interest rate call. The table shows CommBank’s current standard floating and floating interest rate, as well as its lowest floating rate and comparison rate for each, and how much more per month the average borrower could pay since May 1, 2022, before the start of the current round of interest rate hikes.

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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 7.05% (comparison rate 7.19%) $795
package variable 6.35% (6.73% comparison rate) $767
Lowest variable rate 4.54% (comparative rate 4.55%) $624

Westpac Home Loan Interest Rate Rises

Westpac has yet to announce whether it will raise variable rates on home loans, but we’ll update this chart as soon as the bank makes its next interest rate call. The table shows Westpac’s current standard and floating variable interest rate, as well as its lowest floating rate and comparison rate for each, and how much more per month the average borrower could pay since May 1, 2022, before the start of the current round of interest rate hikes.

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Current rate Announced increase From Monthly repayment increase Switch to monthly repayment since May 1, 2022
standard-variable 7.08% (comparison rate 7.21%) $796
package variable 5.79% (6.05% comparison rate) $744
Lowest variable rate 4.74% (comparative rate 4.57%) $709