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RBA hikes kick in for variable borrowers
Australians with a CBA, NAB and ANZ variable home loan will see their interest rates rise by 0.25 percentage points from today, as the RBA’s November hike takes effect.
Westpac variable mortgage customers will see their rates rise from next Tuesday.
In total, variable rate borrowers have seen their rates rise by 2.75 percentage points since May, taking the average existing variable owner-occupier rate to an estimated 5.61 per cent.
RateCity.com.au database analysis:
- 36 lenders (30%) have so far announced their RBA November variable rate hikes.
- 4.19% is expected to be the lowest variable rate from lenders that have announced November RBA changes.
- For someone who had a $500,000, 25-year loan before the RBA rate rises began in May, they’ll be paying an extra $760 a month to their lender as a result of the hikes.
Big four banks lowest advertised variable rates
| Lowest variable | |
| CBA | 4.69% |
| Westpac | 4.49% for 2yrs then 4.89% |
| NAB | 4.74% |
| ANZ | 4.69% |
Source: RateCity.com.au. Notes: rates are for owner-occupiers paying principal and interest. LVR requirements apply on some rates. Westpac rates effective 15th November.
What has happened for savers?
All four big banks’ savings rate hikes have now taken effect, but only on select accounts.
- CBA has today lifted rates on all key savings accounts by up to 0.30% points.
- Westpac has increased the rate on most of its key accounts, however, existing eSavers miss out. The biggest hike is by 0.90% points for existing customers on its Life account.
- NAB has today lifted its Reward Saver by 0.25% points but existing iSaver customers miss out.
- ANZ has increased the rate on its new Plus Save account and Progress Saver both by 0.25% points but existing Online Saver customers miss out.
Big four bank savings rate changes – existing customers
Source: RateCity.com.au.
While CBA and Westpac, in particular, have hiked some savings rates beyond the RBA cash rate hike this month, what ultimately matters are the rates customers are on.
The reality is the majority of existing big bank customers are on a rate that’s below the current cash rate.
Big four banks’ savings rates
| ONLINE SAVERS | ||
| Intro rate | Ongoing rate | |
| CBA NetBank Saver | 3.50% - 5 mths | 1.35% |
| Westpac eSaver | 3.50% - 5 mths | 0.85% |
| NAB iSaver | 3.50% - 4 mths | 1.10% |
| ANZ Online Saver | 2.15% - 3 mths | 0.60% |
| BONUS SAVERS | ||
| Max rate | Conditions | |
| CBA GoalSaver | 2.70% | Grow balance / mth |
| Westpac Life | 3.50% | Grow balance / mth |
| NAB Reward Saver | 2.75% | 1 deposit, no withdraw / mth |
| ANZ Progress Saver | 2.25% | $10+ dep, no withdraw/mth |
| OTHER | ||
| Max rate | Conditions | |
| Westpac Spend&Save | 4.00% | 18 - 29 yrs, mthly cond. apply |
| ANZ Plus Save | 3.50% | 15yrs + |
Source: RateCity.com.au.
RateCity.com.au research director, Sally Tindall, said while CBA and Westpac had, in some cases, gone above and beyond the RBA’s hike this month, many savings accounts were still lower than the cash rate.
“Westpac’s Life account roared back into business this month with a 0.90 percentage point hike, taking the ongoing interest rate to a competitive 3.50 per cent. Yet the bank’s existing eSaver customers haven’t seen an extra cent in interest from the latest RBA hike, leaving their rate at just 0.85 per cent,” she said.
“Don’t just assume your bank is passing on the RBA hike each month. Give your savings account a health check against the competition at least every other month.
“Savers should be aiming for an ongoing rate that’s well over the cash rate, at a minimum. While these rates are becoming easier to find, customers are likely to have to be proactive to get them,” she said.
While banks are still picking and choosing which savings customers get a rate hike, variable mortgages, by and large, have risen across the board.
“Australians have broadly taken these rate hikes on the chin so far, but this further tightening of the screws will start to bite for some families,” she said.
“While the majority of Australian borrowers will be charged additional interest on their home loan from today, it’s going to take another two months or so before this extra money comes out of their bank accounts.
“If you think your budget is unlikely to hold up against this latest rate hike, don’t put your head in the sand, use this extra time to prepare for higher repayments.
“If you know in advance you won’t be able to make ends meet, call your bank now for help.
“The National Debt Helpline is also a fantastic resource that can put you in touch with a free, independent financial counsellor,” she said.
Resources for people in financial stress:
- National Debt Helpline: 1800 007 007
- Good Shepherd no interest loans
- Services Australia Payment and Service Finder
- State-based resources:
Lowest-rate home loans on RateCity.com.au
Note: lowest variable rate is from those lenders that have announced their Nov RBA rate changes
| Rate type | Lender | Rate |
| Lowest variable | Bank First | 4.19% |
| 1-year fixed | Police Credit Union | 4.19% |
| 2-year fixed | IMB Bank | 4.89% |
| 3-year fixed | IMB Bank | 4.99% |
| 4-year fixed | IMB Bank | 4.99% |
| 5-year fixed | HSBC | 5.49% |
Source: RateCity.com.au. LVR requirements apply on some rates.
Highest ongoing savings rates on RateCity.com.au
| All adults | Max rate | Balance for max rate |
| ING Savings Maximiser | 4.30% | $100,000 |
| MOVE Bank | 4.00% | $25,000 |
| St. George, Bank of Melbourne, BankSA | 4.00% | N/A |
| Young adults | Max rate | Balance for max rate |
| BOQ Future Saver (14-35) | 4.10% | $50,000 |
| Westpac Spend&Save (18-29) | 4.00% | $30,000 |
| Police Bank U30 Super Charge Account | 3.60% | $10,000 |
Source: RateCity.com.au. Monthly conditions apply for max rate.
Disclaimer
This article is over two years old, last updated on November 11, 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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Product database updated 19 Nov, 2024
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