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- June RBA variable hikes kick in as CBA piles on extra for select new customers + CBA, NAB and ANZ fixed rate moves
June RBA variable hikes kick in as CBA piles on extra for select new customers + CBA, NAB and ANZ fixed rate moves
Borrowers with a CBA, NAB or ANZ variable mortgages will see their interest rates rise by 0.25 percentage points today, as the RBA’s June hike from last Tuesday takes effect.
Westpac variable mortgage customers will see their rates rise from Tuesday (20 June).
However, Australia’s biggest bank, CBA, has again used this opportunity to increase new customer rates on its basic home loan, in some cases by up to 0.15 percentage points – that’s an increase of up to 0.40 percentage points for select new customers.
This is the fourth time the bank has lifted new customer rates on its Extra Home Loan since March.
Note: CBA’s Wealth Package rates and reference rate have only increased by the 0.25 percentage points prescribed by the RBA.
Increases to CBA’s Extra Home Loan – new customers only
For owner-occupiers paying principal and interest – contact us for investor or interest-only changes
| Deposit size | Old rate | New rate | Change % pts |
| 40% or more | 5.87% | 6.24% | +0.37 |
| 30% or more | 5.92% | 6.32% | +0.40 |
| 20% or more | 6.04% | 6.44% | +0.40 |
| 10% or more | 6.64% | 6.89% | +0.25 |
| Less than 10% | 7.34% | 7.59% | +0.25 |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest.
Short-term fixed rates back on the rise as economists up their cash rate forecasts
CBA, NAB and ANZ have also made changes to their fixed rates today, with some rates increasing by up to 0.60 per cent.
CBA has also cut its 4-year and 5-year fixed rates.
FIXED RATES: Changes to CBA, NAB and ANZ’s lowest fixed rates today
For owner-occupiers paying principal and interest – contact us for investor or interest-only changes
| Bank | Fixed term | Old rate | New rate | Change |
| CBA | 1-yr | 5.99% | 6.29% | +0.30% |
| 2-yr | 6.09% | 6.29% | +0.20% | |
| 3-yr | 5.59% | 5.99% | +0.40% | |
| 4-yr | 6.59% | 6.29% | -0.30% | |
| 5-yr | 6.69% | 6.29% | -0.40% | |
| NAB | 1-yr | 5.89% | 6.24% | +0.35% |
| 2-yr | 5.79% | 6.14% | +0.35% | |
| 3-yr | 5.54% | 5.99% | +0.45% | |
| 4-yr | 6.04% | 6.09% | +0.05% | |
| 5-yr | 6.19% | 6.19% | No change | |
| ANZ | 1-yr | 5.99% | 6.29% | +0.30% |
| 2-yr | 5.99% | 5.99% | No change | |
| 3-yr | 5.49% | 6.09% | 0.60% | |
| 4-yr | 6.29% | 6.29% | No change | |
| 5-yr | 6.39% | 6.39% | No change |
Source: RateCity.com.au. Note: LVR requirements apply.
More pain likely to be on the way
Yesterday, ANZ increased its cash rate forecast, with the bank’s economic team now expecting another RBA hike in both July and August.
As a result, three of the big four banks, Westpac, NAB and ANZ, now expect the cash rate to peak at 4.60 per cent.
CBA currently expects one more hike in August, however, the bank has said there is a 50:50 chance of it occurring in July.
Impact on the average borrower if the cash rate reaches 4.60% in August
| Loan size at start of hikes | Increase - 0.25% hikes in Jul + Aug | Total increase (14 hikes) | Mthly repayments @ 4.60% |
| $500,000 | $154 | $1,288 | $3,623 |
| $750,000 | $231 | $1,932 | $5,434 |
| $1M | $307 | $2,576 | $7,246 |
Source: RateCity.com.au. Based on an owner-occupier paying principal and interest with 25 years remaining. Assumes borrower has not renegotiated their loan since the hikes began and that mortgage rates rise in line with ANZ and NAB’s cash rate forecast.
RateCity.com.au research director, Sally Tindall, said: “CBA is now officially fleeing the scene when it comes to the fight for new customers.”
“This is the fourth time the bank has increased the rate on its basic variable loan in the last four months, in addition to the three standard RBA hikes we’ve had in this time,” she said.
“As a result, CBA’s lowest basic variable rate has increased by a whopping 1.12 percentage points, while existing customer rates have only risen by 0.75 percentage points. It’s not often you see new customers getting the raw end of the deal.
“While these extra rate hikes don’t impact existing customers, anyone considering a basic home loan from Australia’s biggest bank may now have a change of heart.
“Would-be buyers should know they can, and should, get sharper rates than this, particularly if they’re struggling to get the green light on a home loan application,” she said.
“Existing CBA, NAB and ANZ variable rate borrowers will be hit with higher rates from today, however, for many customers, the extra money will only start coming out of their bank accounts from September.
“This delay might seem like a win for customers who need time to make changes to their budgets, but it can make it near impossible to keep track of which hike you’re up to and how many more are still to come.
“The delay also has the potential to cost customers more in the long run if they’re not careful.
“If you have a variable loan, call up your bank and ask them what your monthly repayments will be as a result of this twelfth hike, but also, if we get to number 13.
“That way you can be ahead on your payments, or ahead on your next step to manage them.
“Borrowers considering a short-term fixed rate may want to reassess the playing field on the back of increases from CBA, NAB and ANZ.
“CBA’s lowest 2-year fixed loan has now shot back up to 6.29 per cent, yet the lowest 2-year rate is more than a full percentage point below this.
“If you’re going to lock in a fixed loan, whatever you do, take the time to shop around and be happy with that offer, even if rates go down.
“While the RBA has its foot firmly on the accelerator, many economists believe the Board will be shifting the cash rate into reverse in 2024,” she said.
Big four banks’ lowest advertised rates
Note: Westpac’s variable rates effective 20 June
| Rate type | CBA | Westpac | NAB | ANZ |
| 1-yr | 6.29% | 5.69% | 6.24% | 6.29% |
| 2-yr | 6.29% | 5.69% | 6.14% | 5.99% |
| 3-yr | 5.99% | 6.39% | 5.99% | 6.09% |
| 4-yr | 6.29% | 5.84% | 6.09% | 6.29% |
| 5-yr | 6.29% | 6.69% | 6.19% | 6.39% |
| Basic var | 6.24% | 5.84% for 2yrs then +0.40% | 6.24% | 6.04% |
| Var. with offset | 6.14% | 7.19% | 7.32% | 6.99% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements apply.
Lowest fixed rates on RateCity.com.au
| Fixed term | Lender | Rate |
| 1 yr fixed | The Capricornian | 5.10% |
| 2 yr fixed | Australian Mutual Bank | 5.23% |
| 3 yr fixed | The Capricornian | 4.99% |
| 4 yr fixed | HSBC | 5.29% |
| 5 yr fixed | HSBC | 5.29% |
Source: RateCity.com.au. Rates are for owner-occupiers paying principal and interest. LVR requirements may apply to qualify.
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Product database updated 19 Nov, 2024
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