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Lenders have followed suit and passed on the rate hike to customers on variable-interest home loans on the back of the RBA’s rate decision.
The anticipated rise in the official cash rate came to fruition as the Reserve Bank of Australia (RBA) increased the cash rate by 25 bps on Tuesday, 6 December 2022, bringing it up to 3.1 per cent, the highest level since 2012.
Following the eighth consecutive increase for the year, both major and non-major lenders have passed on the rate increase to their customers.
Suncorp Bank and Macquarie Bank announced that they will be lifting variable home loan rates by 0.25 per cent in accordance with the RBA’s cash rate decision, taking full effect on 15 and 16 December, respectively.
Suncorp customers will see their monthly repayments increase by $14 for every $100,000 of loan balance remaining on a 25-year variable loan.
Additionally, the big four major banks have announced that they will also raise variable interest rates for home loans by 0.25 per cent per annum.
Commonwealth Bank of Australia (CBA), NAB and ANZ customers will see the changes in effect as of Friday, 16 December, while those with a home loan with Westpac will see the increase come to terms on Tuesday, 20 December.
ANZ customers will experience monthly mortgage repayments rise by $65 on variable home loans of $450,000 for owner-occupiers paying principal and interest as a result of the 0.25 per cent increase.
Furthermore, CBA’s Netbank Saver standard variable interest rate and the five-month introductory variable interest rate will increase by 0.25 per cent per annum. The standard variable interest rate will hit 1.60 p.a., while the introductory variable rates will rise to 3.75 per cent p.a.
Currently, NAB is still reviewing savings and term deposit rates, however, the major bank stated it has made more than 45 increases since 1 May across its savings products.
NAB group executive for personal banking, Rachel Slade, said those challenged by the increasing rates should “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 stated.
“When a customer gets in touch with NAB Assist at the early stages of their concerns about their finances, we’re able to get more than 90 per cent back on their feet within 90 days.”
CBA group executive, retail banking, Angus Sullivan, said: “We continue to support our customers facing cost of living pressures through our online budgeting tools, discounts on everyday shopping essentials, and by again lifting the savings rates across some of our most popular deposit products.”
[RELATED: 3.10% December cash rate confirmed: RBA]
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