Here's how the major banks reacted to the RBA's cash rate increase

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on June 08, 2022 Fact Checked
Here's how the major banks reacted to the RBA's cash rate increase

The largest cash rate increase in 22 years has left many stunned, with the big-four banks announcing increases to variable home loan rates.

Westpac home loan rate changes - June

The first of the big-four to jump post-RBA decision was Westpac, passing on the full 50 basis point increase to new and existing customers.

The increase to Westpac's variable rate home loan portfolio will be applied from 21 June. 

Westpac Consumer and Business Banking Chief Executive Chris de Bruin said Westpac customers have managed their finances carefully during the pandemic, with many putting more funds aside in their savings and offset accounts.

"This means the majority of our customers are ahead on mortgage repayments and have a buffer available to help them manage an interest rate increase," Mr de Bruin said. 

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

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

  • Rocket Repay with Package - Principal and Interest home loans will increase to 4.04% p.a.
  • Rocket Repay without Package - Principal and Interest home loans will increase to 5.33% p.a.
  • Rocket Repay with Package - Interest Only home loans will increase to 4.63% p.a.
  • Rocket Repay without Package - Interest Only home loans will increase to 5.92% p.a.
  • Flexi First Option Principal and Interest home loans will increase to 2.94% p.a.
  • Flexi First Option Interest Only home loans will increase to 4.74% p.a.  

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

  • Rocket Repay with Package - Principal and Interest home loans will increase to 3.94% p.a.
  • Rocket Repay without Package - Principal and Interest home loans will increase to 5.23% p.a.
  • Rocket Repay with Package - Interest Only home loans will increase to 4.53% p.a.
  • Rocket Repay without Package - Interest Only home loans will increase to 5.82% p.a.
  • 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 4.64% p.a.  

Comparison rates are expected to be published 21 June.

CommBank home loan rate changes - June

The second of the big-four to bite was CommBank, set to pass on the full 50 basis point increase to new and existing variable home loan customers.

CommBank's new standard variable reference rates will take effect on 17 June.

CommBank's new rates are as follows:

  • Owner Occupier Principal and Interest Standard Variable Rate home loans will increase to 5.30% p.a.
  • Investor Principal and Interest Standard Variable Rate home loans will increase to 5.88% p.a.
  • Owner Occupier Interest Only Standard Variable Rate home loans will increase to 5.79% p.a.
  • Investor Interest Only Standard Variable Rate home loans will increase to 6.14% p.a.

Comparison rates will be revealed 17 June as the rate changes take effect.

ANZ home loan rate changes - June

ANZ is also set to pass on the full 50 basis point increase to new and existing variable home loan customers.

The increase to ANZ's variable rate home loan portfolio will be applied from 17 June. 

ANZ's new rates are as follows: 

For up to 80% loan-to-value ratio (LVR) - 

  • Standard Variable Rate Owner Occupiers Principal and Interest home loans will increase to 3.74% p.a.
  • Standard Variable Rate Investment Principal and Interest home loans will increase to 4.34% p.a.
  • Standard Variable Rate Owner Occupiers Interest Only home loans will increase to 4.29% p.a.
  • Standard Variable Rate Investment Interest Only home loans will increase to 4.59% p.a.

For over 80% loan-to-value ratio (LVR) - 

  • Standard Variable Rate Owner Occupiers Principal and Interest home loans will increase to 3.94% p.a.
  • Standard Variable Rate Investment Principal and Interest home loans will increase to 4.54% p.a.
  • Standard Variable Rate Owner Occupiers Interest Only home loans will increase to 4.49% p.a.
  • Standard Variable Rate Investment Interest Only home loans will increase to 4.79% p.a.

Comparison rates will be revealed 17 June as the rate changes take effect.

NAB home loan rate changes - June

NAB is the last of the big-four to flag its intent to pass on the full 50 basis point increase to new and existing variable home loan customers.

These changes across NAB's variable home loan portfolio will be applied from 17 June, matching CommBank and ANZ. 

NAB's new rates are as follows:

Owner occupiers - 

  • Choice Package Principal and Interest < $250,000 will increase to 4.67% p.a.
  • Choice Package Principal and Interest $250,000 - $749,999 will increase to 4.42% p.a.
  • Choice Package Principal and Interest $750,000+ will increase to 4.37% p.a.
  • Choice Package Interest Only < $250,000 will increase to 5.24% p.a.
  • Choice Package Interest Only $250,000 - $749,999 will increase to 4.99% p.a.
  • Choice Package Interest Only $750,000+ will increase to 4.94% p.a.
  • Tailored Home Loan Principal and Interest will increase to 5.27% p.a.
  • Tailored Home Loan Interest Only will increase to 5.84% p.a. 

Investors - 

  • Choice Package Principal and Interest < $250,000 will increase to 5.27% p.a.
  • Choice Package Principal and Interest $250,000 - $749,999 will increase to 5.02% p.a.
  • Choice Package Principal and Interest $750,000+ will increase to 4.97% p.a.
  • Choice Package Interest Only < $250,000 will increase to 5.57% p.a.
  • Choice Package Interest Only $250,000 - $749,999 will increase to 5.32% p.a.
  • Choice Package Interest Only $750,000+ will increase to 5.27% p.a.
  • Tailored Home Loan Principal and Interest will increase to 5.87% p.a.
  • Tailored Home Loan Interest Only will increase to 6.17% p.a.

Comparison rates will be revealed 17 June as the rate changes take effect.


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Lender

Variable
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Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

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Variable
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QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS
QLD/NSW/VIC/SA METRO & INNER REGIONAL AREAS

Variable Home Loan (Principal and Interest)

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Variable
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REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
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Variable Rate Home Loan – Refinance Only

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Variable
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NO ONGOING FEESFREE REDRAW FACILITY
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Live-in Variable Loan (Principal and Interest) (LVR < 90%)

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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 June 29, 2022. View disclaimer.


    Image by Chris Slupski 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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