Big Bank Mortgage Rate Hike Takes Effect

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CBA, NAB and ANZ variable rate mortgage customers will see their interest rates rise by 0.50% today, but millions of savers are out so far.

Following the RBA’s cash rate hike on June 7, the CBA is the only major bank to raise some savings account rates at this stage.

NAB and ANZ made no rate changes to their savings accounts. Westpac Variable Mortgage Rates will increase next Tuesday, however, at this stage the bank has not announced any savings account rate increases.

RateCity.com.au Database analysis after the RBA rate hike in June:

  • So far, 50% of mortgage lenders have increased or announced increases in variable rate mortgages, and the majority are expected to follow suit (97% increased in May).
  • 24% of banks have to date increased or announced rate hikes on savings accounts (58% in May).
  • 2.44% is what we expect from the new lowest floating rate for mortgages once all the hikes are announced.
  • 2.10% is the new highest permanent savings rate for all adults.

VARIABLE HOUSING LOAN RATES: impact of the May and June increases in the RBA

Following the RBA hikes in May and June, the big four banks will pass on the entire 0.75 percentage point increase to their existing home loan customers.

However, last month after the hike, ANZ cut its lowest variable rate for new customers, and Westpac reintroduced a honeymoon rate, which offers a deeper discount for two years.

Lowest variable mortgage rates for new customers now vs. before RBA hikes

April max rate Maximum rate after RBA hikes Difference

(% points)

ABC

2.19%

2.94%

0.75%

Westpac

2.09%

2.59% for 2 years then 2.99%*

0.50% for 2 years

then 0.90%

NAB

2.19%

2.94%

0.75%

ANZ

2.19%

2.79%

0.60%

Average of the 4 big banks

2.17%

2.82%

0.65%

Source: RateCity.com.au Notes: Home loan rates are for homeowners paying principal and interest, LVR restrictions may apply. *Westpac Home Loan Rates, effective June 21.

SAVINGS RATE: Impact of May and June RBA hikes

While current variable rate customers of the big four banks will see their interest rates increase by 0.75 percentage points, the average bonus savings account has only increased by 0.31 percentage points.

This is because the big four banks chose to climb in one month and not the other.

Bonus savings account rates now compared to before RBA hikes

Pricing pre-RBA increases May increase June increase Pricing post-RBA hikes Total difference
ABC GoalSaver

0.25%

0%

0.50%

0.75%

0.50%

Westpac’s life

0.25%

0.25%

0%

0.50%

0.25%

NAB Reward Saver

0.25%

0.25%

0%

0.50%

0.25%

ANZ Progress Saver

0.15%

0.25%

0%

0.40%

0.25%

Average of the 4 big banks

0.23%

0.19%

0.13%

0.54%

0.31%

Source: RateCity.com.au

Sally Tindall, Research Director of RateCity.com.au, said: “The millions of savers who got nothing more from their bank this month have every right to be angry.”

“It is bitterly disappointing to see that three of the four big banks have yet to move savings rates an inch, while the cash rate has increased by half a percent,” he said. she stated.

“With the cost of living rising rapidly, getting a decent rate on your savings account is becoming increasingly important.

“23 banks have so far raised at least one savings account rate this month, including CBA, ING and Macquarie.

“The key now for anyone who wants to get a decent interest rate on their savings is to compare their account to what else is on offer to see if they can do better,” she said.

It’s a similar situation for the millions of Australians with a variable mortgage.

“While we expect most lenders to increase 0.50 percentage points for their existing mortgage customers this month, some are offering higher rates for new customers.

“If your bank now offers a better interest rate than yours, call and ask them to match it. If the bank refuses, ask them to explain why, as a repeat customer, you are being asked to pay more than new customers.

“If your bank isn’t budging, it might be worth looking for a lender willing to give you a better deal,” she said.

POST-JUNE RBA – Lowest Current Variable Mortgage Rates on RateCity.com.au

Of the lenders that have so far announced changes

Lender Assess
Homestar Finance

2.44%

Reduce home loans

2.44%

Pacific Mortgage Group

2.49%

australian bank

2.51%

OneTwo Home Loans

2.59%

Source: RateCity.com.au. Rates are for homeowners who pay principal and interest. LVR restrictions may apply. The discount rate comes into effect on June 24.

POST JUNE RBA: Highest Current Savings Rates on RateCity.com.au

Bonus savings accounts: maximum rate
Market Leaders Balance for maximum rate
ING Savings Maximizer

2.10%

$100,000

BOQ Smart Saver Account

2.00%

$250,000

Virgin Money Boost Saver

2.00%

$250,000

Young Adult Market Leaders
BOQ Future Saver (14-35)

3% up to $50,000

$50,000

Spend & Save Westpac (18-29)

2% up to $30,000

$30,000

Source: RateCity.com.au. Monthly terms apply for the maximum rate.

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