The Reserve Bank of Australia (RBA) has raised interest rates again, with all four of the big four banks – Commonwealth Bank, Westpac, NAB and ANZ – expecting to raise their floating rates on home loans in return. We’ll follow how the big four banks and other lenders are reacting to today’s announcement and what it could mean for your mortgage rates and monthly payments. Article last updated on Wednesday 6 July 12:30pm AEST.

At its monthly meeting for July earlier today, the RBA raised interest rates by 50 basis points to 1.35%. That decision marks the third hike in cash rates in as many months, and the RBA had previously indicated rates will continue to rise until at least late 2022.

Following the RBA’s announcement in June, each of Australia’s big four banks announced that they would pass on cash rate increases in full to their customers, and Australian home loan borrowers may be wondering how their monthly repayments will change following this latest increase in cash rates will.

Experts assume that most major banks and mortgage lending institutions will pass on the latest rate hike in full.

• Commonwealth Bank was the first of the big four banks to announce a rate hike, announcing on Wednesday morning that it will raise variable rates on home loans by 0.50 percentage point from July 15.
• NO followed on Wednesday afternoon, announcing it would also increase variable rates on home loans by 0.50 percentage point from July 15.

Of the other four big banks, Westpac and NAB have yet to respond. We’ll be keeping an eye on their movements, as well as those of smaller home loan lenders, so keep an eye on this article as we update through this afternoon and the coming days.

Readers, note that home loan interest rate changes are often expressed in “basis points” – if you want to know more you can read our explanation to find out how basis points work.

Source: www.canstar.com.au. Last updated on Wednesday 6 July 12:30pm AEST. Current interest rates are based on floating owner-occupier rates in Canstar’s database for a $500,000 loan amount, at 80% LVR with principal and interest repayments. Monthly payback calculations based on $500,000 Loan repaid over a total of 30 years using principal and interest repayments. Lowest rates are based on the lowest available rate of products that were also available prior to the May 2022 cash rate increase. Tariffs are based on those available to new customers. Comparative interest calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the comparison rate warning.

CommBank was the first of the big four banks to announce a rate hike, telling customers Wednesday morning that it will increase its variable rates on home loans by 0.50 percentage points (pps). The change will take effect on July 15. The following table shows CommBank’s current standard variable rate and packaged variable rate, as well as the lowest variable rate and each comparative rate, as well as the changes that this rate increase could cause to monthly repayments and the potential total change to monthly repayments since May 1, 2022.

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

ANZ has also reacted to the rate hike, announcing on Wednesday afternoon that it will raise floating rates on home loans by 0.50 percentage point from July 15. The following table shows ANZ’s current standard floating rate and discounted floating rate, as well as its lowest floating rate and the comparative rate for each, as well as the changes this rate hike could cause in monthly repayments and the potential total change in monthly repayments since May 1st 2022.

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

NAB has not yet announced how it will react to the rate hike. The following table shows the current variable standard interest rate and the variable package interest rate of NAB as well as the lowest variable interest rate and the respective comparative interest rate. As soon as NAB makes an announcement, we’ll update the chart to show what the bank’s rate hike could mean for monthly mortgage payments.

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

Westpac has not yet announced how it will react to the rate hike. The following table shows Westpac’s current standard variable rate and package variable rate, as well as the lowest variable rate and the relevant comparative rate. As soon as Westpac makes an announcement, we’ll update the chart to show what the bank’s rate hike could mean for monthly mortgage payments.

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

Canstar calculated the numbers based on the average variable rate for owner occupiers in our database at the time of writing this article and found that:

• Borrowers with a $500,000 home loan could expect their monthly repayment to increase by $144.
• Borrowers with a $750,000 home loan could expect their monthly repayment to increase by $216.
• Borrowers with a $1,000,000 home loan could expect their monthly repayment to increase by $288.

Aside from the Big Four banks, most other home loan lenders are likely to pass on the RBA’s July rate hike in some form to their home loan customers, as they did in the days and weeks following last month’s decision. We’ll be following the movements of smaller lenders and will update you as these other players announce their plans.

Source: www.canstar.com.au. Last updated on Wednesday 6 July 12:30pm AEST. Current interest rates are based on floating owner-occupier rates in Canstar’s database for a $500,000 loan amount, at 80% LVR and with repayments of principal and interest. Monthly payback calculations based on $500,000 Loan repaid over a total of 30 years using principal and interest repayments. Lowest rates are based on the lowest available rate of products that were also available prior to the May 2022 cash rate increase. Tariffs are based on those available to new customers. Comparative interest calculated based on a loan amount of $150,000 and a loan term of 25 years. Read the comparison rate warning.

Cover image source: SOURCE/Shutterstock.com

Thank you for visiting Canstar, Australia’s largest financial comparison site*