CBA and ANZ hike mortgage rates but ANZ leaves savers in the cold

CBA and ANZ have announced they will pass on Tuesday’s 0.25 percentage point cash rate increase to their variable home loan customers, effective 16 June 2023.

This takes both banks’ lowest variable rate above the 6 per cent mark.

HOME LOANS: CBA new customer variable rates for owner-occupiers – effective 16 June

Source: RateCity.com.au. Rates are for owner-occupiers playing principal and interest. LVR requirements apply.

HOME LOANS: ANZ new customer variable rates for owner-occupiers – effective 16 June

Source: RateCity.com.au. Rates are for owner-occupiers playing principal and interest. LVR requirements apply.

What has CBA and ANZ done for savers?

CBA will be passing on the full hike to all three of their key savings accounts. As a result, the highest ongoing savings rate from Australia’s biggest bank will be 4.65 per cent for all adults, while YouthSaver customers will get 4.75 per cent, provided they meet the bank’s terms and conditions.

ANZ has not announced a single increase to its savings accounts at this stage.

CBA savings changes

Source: RateCity.com.au. Note: conditions and balance caps apply for maximum rate on select accounts.

RateCity.com.au research director, Sally Tindall, said: “CBA has done the right thing and passed on the entire rate hike to every one of its savings customers, which is fantastic to see,” she said.“This will hopefully put pressure on the other big banks to reassess their savings rates and pass on full hikes. At this stage, both Westpac and ANZ have not announced a single rate hike for their savings customers. That’s simply not good enough,” she said.

“If you have a savings account with Westpac or ANZ, call, tweet or email to ask them what they intend to do with your rate.

While CBA’s highest ongoing savings rate is now inching towards 5 per cent, it’s still a fair way off the market leaders. If Bank of Queensland passes on Tuesday’s RBA hike in full we could see the highest ongoing savings rate climb above 5.50 per cent.

“Many borrowers with a mortgage will be wondering how on earth they’re going to make the budget add up when rate hike number 12 hits their bank account. The banks typically take two to four months to increase a borrowers’ repayments, so if you’ve got a mortgage use that time wisely.”

“You may have already gone through your budget with a fine-tooth comb but it’s worth going through that process again.”

“Also, take five minutes out of your day to call your bank and ask for a rate cut or ask your broker to make the call for you. You’d be surprised how much the bank is willing to shave off your rate, just by picking up the phone and asking, even if your last review was only a few months ago.”

“If you don’t ask, you don’t get,” she said.

Steps you can take to help combat the rising cost of living:

1. Refinance your mortgage: if you haven’t negotiated your loan in the last year, switching to a lower rate could wind back the clock by a potentially 5 rate hikes and save you hundreds, if not thousands.

2. Identify the leaks: print out a list of your debit and credit card transactions and grab a red pen. Look at where the money is going and what you might be able to remove.

3. Push for a pay rise: If you haven’t had a decent wage increase recently, ask your boss for a rise.

4. Review your other bills: Put your other bills under the microscope to see where you can save, such as your energy, phone, and internet packages.

5. Shop smarter:switching to cheaper brands, shopping at different supermarkets for items on special, or buying in bulk can in some cases, quarter, or even half one of the biggest recurring expenses.

6. Set a budget target: Set yourself a stretch target on your weekly shop and reward yourself when you come under budget.

7. Sell your second car. If one of your cars is spending too much time in your garage, because you’re working from home these days or catching public transport – now could be the time to sell it. The second-hand property market is still hot. Take advantage of it while you can. Not only will it bring in extra cash, but it will also save money such as insurance, maintenance and of course petrol.

8. Schedule a no-spend day:This is a test of the mind more than the wallet. One no-spend day a month can reset your shopping mindset and prompt you to think twice before opening your wallet, every day of the month.

9. Put any spare money in your mortgage: the banks calculate the interest on your mortgage daily, so if you are an owner-occupier, consider putting your whole salary into your offset account, or straight into your mortgage and take it out as and when you need it.

10. Switch to cheaper brands: Bring down your grocery bill by trying out lower-cost brands at the supermarket. You might hate some new products, but chances are there will be some lower cost brands you switch to for good.

11. Use online tools to your advantage: Do your grocery shop online and then collect it from the store at no extra cost. This way you can track your total as each item is added to the cart and save any surprises at the till.

12. Be mindful of your energy usage: If you can, switch to monthly billing cycles to help you retain control. Monthly bills can help you can identify the problem quicker. Some providers also let you check your energy usage in real time online, to help keep track of your costs.

13. Treat yourself: This might feel counter intuitive but it’s important – especially if you want to avoid a ‘bad day’ blowout. It’s amazing how good a special dinner out after a month of serious saving can taste.

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