How did CBA, ANZ, Westpac and NAB react to the RBA's cash rate rise?

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on May 03, 2022 Fact Checked
How did CBA, ANZ, Westpac and NAB react to the RBA's cash rate rise?

The lid is off on the first RBA cash rate increase in more than a decade, and the major banks all increased variable rates by 25 basis points.

Commonwealth Bank home loan rate changes - May

CommBank will lift standard variable rates across its home loan portfolio by 25 basis points following the decision by the RBA on Tuesday to lift the cash rate by 25 basis points. 

CommBank's new standard variable reference rates will take effect on 20 May 2022.

CommBank's new rates are as follows:

  • Owner Occupier Principal and Interest Standard Variable Rate home loans will increase to 4.80% p.a.
  • Investor Principal and Interest Standard Variable Rate home loans will increase to 5.38% p.a.
  • Owner Occupier Interest Only Standard Variable Rate home loans will increase to 5.29% p.a.
  • Investor Interest Only Standard Variable Rate home loans will increase to 5.64% p.a.

Comparison rates will be revealed as the rate changes take effect.

CommBank economists had previously forecast the first rate increase to take place at the June RBA Board meeting following confirmation that wages have started to lift towards the RBA's goal rate of 3%. 

ANZ home loan rate changes - May

Rewinding back a month ago following the RBA's April decision, ANZ Head of Australian Economics David Plank forewarned while signs pointed to June May should not be ruled out for a rate hike.

Now following the lead of CommBank, ANZ will also increase variable interest home loan rates in Australia by 25 basis points.

The increase to ANZ's variable home loan rate portfolio comes a week earlier than CBA, taking effect from 13 May 2022.

ANZ's new rates are as follows:

  • Standard Variable Rate Owner Occupiers Principal and Interest home loans will increase to 4.64% p.a.
  • Standard Variable Rate Owner Occupiers Interest Only home loans will increase to 5.19% p.a.

ANZ notes the 25 basis point hike will increase monthly repayments by $57 on an average home loan of $450,000 for an owner occupier paying principal and interest.

Again, comparison rates will be revealed as the rate changes take effect.

ANZ Group Executive Australia Retail Maile Carnegie said in making this decision various factors were considered including the change in the official cash rate.

"While this change will impact customers in different ways, home loan customers are generally well placed to manage rising rates with around 70% of accounts ahead on repayments – many of them by two years or more," Ms Carnegie said. 

Westpac home loan rate changes - May

The third of the big-four to announce a variable rate increase, Westpac will join CommBank and ANZ in lifting variable rates across its home loan portfolio by 25 basis points.

The increase to Westpac's variable home loan rate portfolio takes place from 20 May 2022.

Westpac's new rates for owner occupiers are as follows:

For over 70% loan-to-value ratio (LVR) - 

  • Flexi First Option Principal and Interest home loans will increase to 2.44% p.a.
  • Flexi First Option Interest Only home loans will increase to 4.24% p.a. 
  • Rocket Repay with Package - Principal and Interest home loans will increase to 3.54% p.a.
  • Rocket Repay without Package - Principal and Interest home loans will increase to 4.83% p.a.
  • Rocket Repay with Package - Interest Only home loans will increase to 4.13% p.a.
  • Rocket Repay without Package - Interest Only home loans will increase to 5.42% p.a. 

For up to 70% loan-to-value ratio (LVR) - 

  • Flexi First Option Principal and Interest home loans will increase to 2.34% p.a.
  • Flexi First Option Interest Only home loans will increase to 4.14% p.a. 
  • Rocket Repay with Package - Principal and Interest home loans will increase to 3.44% p.a.
  • Rocket Repay without Package - Principal and Interest home loans will increase to 4.73% p.a.
  • Rocket Repay with Package - Interest Only home loans will increase to 4.03% p.a.
  • Rocket Repay without Package - Interest Only home loans will increase to 5.32% p.a. 

Westpac's new rates for investors are as follows:

For over 70% loan-to-value ratio (LVR) - 

  • Flexi First Option Principal and Interest home loans will increase to 2.84% p.a.
  • Flexi First Option Interest Only home loans will increase to 3.14% p.a. 
  • Rocket Investment with Package - Principal and Interest home loans will increase to 4.09% p.a.
  • Rocket Investment without Package - Principal and Interest home loans will increase to 5.38% p.a.
  • Rocket Investment with Package - Interest Only home loans will increase to 4.35% p.a.
  • Rocket Investment without Package - Interest Only home loans will increase to 5.64% p.a. 

For up to 70% loan-to-value ratio (LVR) - 

  • Flexi First Option Principal and Interest home loans will increase to 2.74% p.a.
  • Flexi First Option Interest Only home loans will increase to 3.04% p.a. 
  • Rocket Investment with Package - Principal and Interest home loans will increase to 3.99% p.a.
  • Rocket Investment without Package - Principal and Interest home loans will increase to 5.28% p.a.
  • Rocket Investment with Package - Interest Only home loans will increase to 4.25% p.a.
  • Rocket Investment without Package - Interest Only home loans will increase to 5.54% p.a. 

Comparison rates for Westpac's portfolio of variable loans will be revealed as the rate changes take effect

NAB home loan rate changes - May

On Wednesday morning National Australia Bank announced a few changes to its variable rate home loans, all up by 25 basis points.

The changes will take effect from 13 May.

For its Tailored home loans, NAB's new standard interest rates will be:

  • Owner Occupied Principal & Interest: 4.77% p.a.
  • Owner Occupied Interest Only: 5.34% p.a.
  • Investor Principal & Interest: 5.37% p.a. 
  • Investor Interest Only: 5.67% p.a.

Comparison rates will be revealed as the rate changes take effect.

NAB says the rate increase could add $57 a month to repayments for owner occupiers on a $400,000 30-year Choice Package mortgage paying a rate of 3.67% p.a.


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Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 26, 2022. View disclaimer.


Image by Pete Wright via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Jacob Cocciolone joined the Savings team in 2021 as a Finance Journalist. Driven by a passion for keeping Australians up to date with the latest financial news and trends, his areas of interest include financial technology, investing, property and motoring.

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