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The official cash rate rose to 3.1 per cent after the Reserve Bank of Australia (RBA) called its eighth consecutive cash-rate increase for 2022 on 6 December 2022, bringing it to its highest level in a decade.
As a result of the RBA’s decision, the big four banks across the board have decided to raise variable interest rates for home loans by 0.25 per cent per annum.
For Commonwealth Bank of Australia (CBA), ANZ, and NAB customers, these changes will go into effect as of Friday, 16 December 2022, while Westpac customers will see the changes implemented on Tuesday, 20 December 2022.
For ANZ customers, the 0.25 per cent increase to the variable home loan interest rates will increase monthly repayments by $65 on variable home loans of $450,000 for owner-occupiers paying principal and interest.
CBA’s NetBank Saver standard variable interest rate will rise by 0.25 per cent p.a. to 1.60 per cent, along with the five-month introductory variable rate increasing by 0.25 per cent to 3.75 per cent p.a.
NAB’s savings and term deposit rates are currently still under review, with the major bank stating that it has made more than 45 increases across its savings products since 1 May.
In addition to the major banks, Suncorp Bank and Macquarie Bank are also lifting variable home loan rates by 0.25 per cent in line with the RBA’s cash rate decision.
Suncorp’s home loan increases will go into effect from Thursday, 15 December 2022. Customers on a 25-year variable loan will see their monthly repayments increase by $14 for every $100,000 of loan balance remaining.
In response to the rate changes, ANZ group executive, Australia retail, Maile Carnegie, said: “We know that with increases in the cost of living and rate changes across the year some of our customers may be feeling greater financial pressure.”
Westpac consumer and business banking, chief executive, Chris de Bruin, said the bank understands that some customers may find it more difficult to manage finances following the rate change.
“We know our 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,” Mr de Bruin said.
“We have an experienced customer support team ready to work with each customer one-on-one to offer help if they are in a tough spot.”
[RELATED: ‘Ho, Ho … oh no!’ RBA announces December rate rise]