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Big bank mortgage rate hikes kick in
CBA, NAB and ANZ variable rate mortgage customers will see their interest rates rise by 0.50 per cent today, but millions of savers are so far missing out.
Following the RBA cash rate hike on 7 June, CBA is the only big four bank to increase some savings account rates at this stage.
NAB and ANZ have not made any rate changes to their savings accounts. Westpac variable mortgage rates will rise next Tuesday, however, at this stage the bank has not announced any savings account rate increases.
RateCity.com.au database analysis following June RBA rate hike:
- 50% of home loan lenders have so far increased or announced variable rate mortgage hikes, with the majority expected to follow (97% hiked in May).
- 24% of banks have so far increased or announced savings account rate hikes (58% hiked in May).
- 2.44% is what we expect the new lowest variable home loan rate will be once all the hikes are announced.
- 2.10% is the new highest ongoing savings account rate for all adults.
VARIABLE HOME LOAN RATES: impact of the May and June RBA hikes
As a result of the May and June RBA hikes, the big four banks will be passing on the full 0.75 percentage point increase to their existing home loan customers.
However, last month after hiking, ANZ cut its lowest variable rate for new customers, and Westpac re-introduced a honeymoon rate, which gives a bigger discount for two years.
Lowest variable home loan rates for new customers now compared to before the RBA hikes
| Max rate April | Max rate post RBA hikes | Difference (% points) | |
| CBA | 2.19% | 2.94% | 0.75% |
| Westpac | 2.09% | 2.59% for 2 yrs then 2.99%* | 0.50% for 2 yrs then 0.90% |
| NAB | 2.19% | 2.94% | 0.75% |
| ANZ | 2.19% | 2.79% | 0.60% |
| Big 4 bank average | 2.17% | 2.82% | 0.65% |
Source: RateCity.com.au Notes: Home loan rates are for owner-occupiers paying principal and interest, LVR restrictions may apply. *Westpac home loan rates, effective 21 June.
SAVINGS RATES: impact of May and June RBA hikes
While existing big four bank variable rate customers will see their interest rates rise by 0.75 percentage points, the average bonus saver account has only gone up by 0.31 percentage points.
This is because the big four banks have chosen to hike in one month and not the other.
Bonus savings account rates now compared to before the RBA hikes
| Rate pre- RBA hikes | May increase | June increase | Rate post-RBA hikes | Total difference | |
| CBA GoalSaver | 0.25% | 0% | 0.50% | 0.75% | 0.50% |
| Westpac 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% |
| Big 4 bank average | 0.23% | 0.19% | 0.13% | 0.54% | 0.31% |
Source: RateCity.com.au
RateCity.com.au research director, Sally Tindall said: “The millions of savers who have got nothing extra from their bank this month have every right to be angry.”
“It’s bitterly disappointing to see three of the big four banks haven’t yet moved savings rates an inch, when the cash rate has gone up by half of a percent,” she said.
“With the cost of living rapidly rising, getting a decent rate on your savings account is becoming increasingly important.
“23 banks have so far hiked at least one savings account rate this month, including CBA, ING and Macquarie.
“The key now for anyone wanting 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 home loan.
“While we expect most lenders will be hiking by the full 0.50 percentage points for their existing mortgage customers this month, some are putting sharper rates on the table for new customers.
“If your bank is now offering a better interest rate than you’re on, call up and ask them to match it. If the bank says no, ask them to explain why as a loyal customer, you are being asked to pay more than new customers.
“If your bank doesn’t budge, it could be worth shopping around for a lender willing to offer you a better deal,” she said.
POST-JUNE RBA – Lowest ongoing variable mortgage rates on RateCity.com.au
Of the lenders that have so far announced changes
| Lender | Rate |
| Homestar Finance | 2.44% |
| Reduce Home Loans | 2.44% |
| Pacific Mortgage Group | 2.49% |
| Auswide Bank | 2.51% |
| OneTwo home loans | 2.59% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR restrictions may apply. Reduce’s rate comes into effect 24 June.
POST JUNE RBA: Highest ongoing savings rates on RateCity.com.au
| Bonus saver accounts: Max rates | ||
| Market leaders | Balance for max rate | |
| ING Savings Maximiser | 2.10% | $100,000 |
| BOQ Smart Saver Account | 2.00% | $250,000 |
| Virgin Money Boost Saver | 2.00% | $250,000 |
| Young adults market leaders | ||
| BOQ Future Saver (14-35) | 3% up to $50K | $50,000 |
| Westpac Spend&Save (18-29) | 2% up to $30K | $30,000 |
Source: RateCity.com.au. Monthly conditions apply for max rate.
Disclaimer
This article is over two years old, last updated on June 17, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.
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