All four major banks will increase mortgage rates by 0.5 percentage points, fully impacting the Reserve Bank’s latest rate hike to customers.
The Commonwealth Bank of Australia, ANZ Bank and NAB followed Westpac on Wednesday in announcing an increase in variable mortgage rates, which will take effect late next week.
The Reserve Bank raised the cash rate by 0.5 percentage points on Tuesday afternoon. Credit: Paul Rovere
The Reserve Bank on Tuesday announced a 0.5 percentage point rise in official interest rates, the biggest one-month increase in more than two decades, and brought the cash rate to 0.85%.
Westpac was the first major lender to raise mortgage interest rates on Tuesday night, followed by Macquarie Bank, CBA, ANZ and NAB on Wednesday afternoon.
In a statement, CBA retail banking group executive Angus Sullivan said the new variable interest rates on home loans will take effect on June 17. “We are here to support Australian households who may be concerned about paying off their home loans,” he said.
CBA also announced that it would increase the discount interest rate on several of its savings products by 0.5% and expand the availability of its 18-month term deposit offer by 2.25%.
ANZ’s head of retail banking, Maile Carnegie, said: “We know that rate changes affect customers differently and some may be looking for support as they reorganize family budgets, especially if they haven’t experienced many rates before “.
NAB personal banking group executive Rachel Slade said the bank had seen an increase in customers asking for support. “There was an increase in the number of customers who contacted loan support the day after the May rate hike, and many customers have accessed online tools to manage their home loans. “We are here to help any customer who needs support,” he said.