Rate hike state of play: has your bank hiked interest rates yet?

It’s been three days since the Reserve Bank of Australia hiked the cash rate by 25 basis points to 0.35%, but only a few lenders have announced they will be passing this increase on.

Homeowners across the country are waiting with bated breath to find out if, and when, their home loan provider will be passing on the latest cash rate hike to them.

As of the time of writing, 31 lenders have announced they will be passing on the latest cash rate hike – almost all of them in full by 25 basis points.

The lenders that have announced rate hikes

Source: RateCity.com.au **Reduce Home Loans hike for new customers only. 

If your lender is not yet on this list, you may not be out of the woods yet. It may still be several days until each lender announces how they may change their interest rates for customers.

• View live rate hike updates and get notified when your lender passes on a rate hike at RateCity’s RBA Cash Rate Tracker

Savers out of luck with rate hikes not passed on

Not every lender is passing on the rate hike in full for all variable rate products. In bad news for savers with Australia’s biggest bank, CommBank revealed it will not be increasing its savings account interest rates, despite hiking variable rate home loans. Instead, it is offering a new 18-month term deposit to customers with a competitive rate of 2.25%.

Several lenders have followed CBA’s lead in not announcing they will pass on the rate hike to savings accounts but instead lift term deposit rates. This includes Newcastle Permanent, Greater Bank and MyState Bank.

When you consider that term deposits lack the flexibility and accessibility that savings accounts do this may come to the disappointment of savings customers. Especially with several more cash rate hikes expected over the next few years that may or may not be passed on to savings accounts as well.

With the current cost of living pressures facing everyday Australians, paired with greater mortgage payments but little changes to savings rates, it may be more important than ever to ensure you’re getting the most competitive interest rate on your home loan.

If the cash rate hike has you considering refinancing your mortgage, be sure to do your research and carefully compare your options to find one that best suits your budget and financial needs.

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