Commonwealth Bank has raised interest rates following four other big banks after the Reserve Bank’s latest hike.
CBA raised its variable home loan rates by 0.25 percent, in a move that matched Westpac, ANZ and NAB.
Westpac and ANZ announced on Thursday that they would increase variable interest rates on Australian home loans by 0.25 percent per annum. NAB was the first to move on Wednesday.
ANZ said the change to variable home loan interest rates will take effect from May 12 and will increase monthly payments by $68 on a $450,000 variable home loan for a homeowner paying principal and interest.
Westpac is also increasing the variable interest rate on home loans by 0.25 percent per year for new and existing customers, but effective May 16.
He also announced that some savers would also benefit from the rate hike.
The bank’s Youthsaver Bonus Rate will increase by 0.25% to 4.50% and its Bonus Goalsaver Interest Rate will increase by 0.25% per annum to 4.40% per annum
All variable rate savings and home loan changes announced today will take effect on May 12, 2023.
The changes come after the RBA shocked markets with its announcement on Tuesday that it would raise the official cash rate by 25 basis points to 3.85 percent, the highest level in 11 years.
It followed a pause in April in its aggressive strategy of 10 consecutive rate hikes to offset inflation well above its 2-3 percent target.
The four banks have also said that anyone having problems with payments should contact them.
“We understand that the combination of rising interest rates and rising cost of living is creating challenges for some customers, so we encourage any customer with concerns to message us on the CommBank app to start a conversation. with one of our specialists, the sooner that conversation starts, the sooner we can start working together to find solutions based on each client’s individual circumstances,” said CBA Group Executive Angus Sullivan.
“We have a number of tools available to help our customers understand these changes and manage their home loans, but if you’re having difficulties, please contact our experienced teams as soon as possible to discuss additional tailored support,” ANZ Group Executive Australia Retail said. Maile Carnegie.
Westpac chief executive of consumer and commercial banking Chris de Bruin said help was available.
“We know that customers are carefully scrutinizing their budgets as interest rates rise. While many are adjusting to make higher payments, we understand that others may need additional help,” she said.
“To help, we are reaching out to some customers who we think may need additional support, we also encourage any customers who are having difficulty to give us a call,” Mr. de Bruin said.