Following the trend of the past seven cash rate increases, all major banks will pass on the December's increase in-full to new and existing variable home loan rates. 

PropTrack Senior Economist Eleanor Creagh said with inflation remaining high and increasing evidence of labour market tightness, the RBA has continued to raise the cash rate at the fastest pace since the 1990s to ensure inflation expectations remain 'anchored'.

“The fastest rise to the cash rate since the 1990s has quickly rebalanced the housing market from last year’s extreme growth levels, with prices falling in most parts of the country," Ms Creagh said. 

“Now the cash rate is sitting at 3.10% after a substantial 300 basis points of tightening to date, maximum borrowing capacities have dropped by more than 20%."

For savers, all of the major banks passed on increases in November with the expectation of an early Christmas good-tiding with further increases in December.


Below is a selection of variable rate home loans from the major banks.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.84% p.a.
6.88% p.a.
Principal & Interest
6.84% p.a.
7.16% p.a.
Principal & Interest
Important Information and Comparison Rate Warning

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. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. 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 . View disclaimer.


Westpac has become the first of the big-four to respond within the space of a couple of hours to the RBA's December decision, flagging its intent to pass on the cash rate increase in full to variable rate mortgage holders. 

This 0.25% increase will come into effect from 20 December 2022 for new and existing customers.

Westpac will also increase savings account rates across both Westpac Life and Westpac Spend&Save accounts. 

Westpac Life customers will receive a savings account rate of 3.75% p.a. from 16 December, while Spend&Save customers aged 18-29 will receive a rate of 4.35% p.a. - an increase of 0.35% p.a. 

Westpac Consumer and Business Banking Chief Executive Chris de Bruin noted customers are paying extra attention to their household budget in the lead-up to Christmas and looking at ways to manage their money into the New Year in the changing economic environment. 

“While the majority of our customers are managing well through this cycle with a strong jobs market and savings built up during the pandemic, we understand some customers may find it more difficult," Mr de Bruin said. 

“We’re continuing to increase savings interest rates to support customers saving for the future." 


The second of the big-four to respond to RBA's December decision, NAB will increase home loan interest rates for variable customers by 0.25% p.a. from 16 December 2022. 

Unlike Westpac, at current NAB is yet to announce an increase to savings accounts detailing that the market for savings accounts is dynamic with the bank having already made more than 45 increases to savings products since 1 May. 

NAB Group Executive for Personal Banking Rachel Slade said it’s important for anyone finding the increasing interest rates a challenge to lean on their bank for support.

“Regardless of who you bank with, I encourage people to speak to their bank early if they are concerned," Ms Slade said. 


Following the lead of Westpac and NAB, ANZ has responded to the RBA's December decision with a 0.25% p.a. increase to variable rate home loans from 16 December 2022.

ANZ has replicated NAB in that the big-four bank has not yet detailed any increases to savings account rates, instead noting they are constantly 'under review'. 

ANZ Group Executive Australia Retail Maile Carnegie said with increases in the cost of living and rate changes across the year some of our customers may be feeling greater financial pressure.

"If customers are facing difficulties, we urge them to reach out to ANZ as early as they can to discuss tailored options to support them and their circumstances," Ms Carnegie said.


The last of the major banks to respond to the RBA's December decision was Australia's largest bank, with CommBank detailing it will pass on the 0.25% p.a. increase to variable rate home loans from 16 December 2022. 

Unlike NAB and ANZ, CommBank will also pass on the RBA increase to savers, with NetBank Saver, GoalSaver and Youthsaver increasing by up to 0.60% p.a. 

CommBank Group Executive of Retail Banking Angus Sullivan said CommBank continues to support customers facing cost of living pressures through online budgeting tools, discounts on everyday shopping essentials, and by again lifting the savings rates.

“We have helped customers save in excess of $22 million when they shop using our cashback program, CommBank Rewards, in the CommBank app," Mr Sullivan said.

"Millions of CBA customers have engaged with our shopping offers, with close to 75 per cent of redemptions over the last quarter being claimed on everyday essential purchases including grocery, fuel, food, pharmacy and pet supplies."

Mr Sullivan further noted CommBank would be extending its free, three-year nbn plan for home seekers for a further six months.


Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

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BankSavings AccountBase Interest Rate Max Interest Rate Total Interest Earned Introductory Term Minimum Amount Maximum Amount Minimum Monthly Deposit Minimum Opening Deposit ATM Access Joint Application TagsFeaturesLinkCompare
4.40% p.a.
5.75% p.a.
Intro rate for 4 months
then 4.40% p.a.
4 months
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
1.20% p.a.
Bonus rate of 4.20%
Conditions apply.
5.40% p.a.
  • Earn up to 5.40% pa by depositing $1,000 in the previous month
  • No account fees
  • Easy access to your money
0.10% p.a.
Bonus rate of 5.00%
Conditions apply.
5.10% p.a.
Featured No monthly fees
  • Download the App to open your account
  • Get better visibility of your spending within App!
  • Deposit $200 per month to activate bonus interest
Important Information and Comparison Rate Warning

All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of . View disclaimer.

Image by CBA, ANZ, NAB & Westpac

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