Which banks have raised mortgage interest rates so far?

The cash rate is on the move again, and millions of Australian homeowners may be wondering if their bank is passing the latest hike on to their mortgage in full.

Australia’s key rate was raised by 50 basis points to 0.85% by the Reserve Bank of Australia, the largest hike announced since February 2000.

That’s two consecutive rate hikes that homeowners must manage in their household budgets, and more cash rate hikes are expected. In fact, the big four banks are now predicting that we could have a cash rate starting with a “2” by Christmas.

With higher mortgage payments now inevitable, homeowners may wonder if their bank has ever announced rate hikes to variable rate home loan customers.

Lenders who have announced interest rate hikes (so far)

As of this writing, 15 lenders announced changes to their home loan interest rates for variable mortgage holders in June. Each lender has agreed to fully pass on this 50 basis point increase to its existing home loan customers.

Rate hike announcements

Real estate lender Price increase Effective date
Westpac

0.50%

6/21/22

Commonwealth Bank of Australia

0.50%

6/17/22

ANZ

0.50%

6/17/22

NAB

0.50%

6/17/22

Macquarie Bank

0.50%

6/17/22

Bank ME

0.50%

06/18/22

blank silver

0.50%

6/14/22

Bank of Queensland

0.50%

6/14/22

St. George’s Bank

0.50%

6/21/22

Bank of Melbourne

0.50%

6/21/22

Bank SA

0.50%

6/21/22

ING

0.50%

6/14/22

Bankwest

0.50%

6/16/22

MyState Bank

0.50%

06/19/22

RAMS

0.50%

6/20/22

Source: RateCity Rate Tracker

What does this mean for my home loan repayments?

If you are currently paying off a variable interest rate home loan with one of the lenders above, you can expect the rate hike noted to take effect after the date shown above.

This rate increase may not have an immediate impact on your repayments, as interest is calculated daily and charged monthly. Many home loan customers may find that they bear the brunt of these higher repayments when paying off the mortgage in subsequent months.

For CommBank customers, for example, that hike can mean more than $100 more for subsequent months’ mortgage payments for existing customers with a $500,000 home loan and 25 years remaining.

CBA variable rates for homeowners paying principal and interest

Old tariff New tariff Increase in monthly repayments
Standard variable rate 4.80% 5.30% $146
Reduced variable rate 4.10% 4.60% $140
Lowest variable rate 2.44% 2.94% $127

Source: RateCity.com.au. Repayments are for a homeowner paying principal and interest with a $500,000 loan over 25 years. An LVR of 70% applies to the lowest CBA variable rate. Rates effective June 17.

If you are on a fixed rate home loan, your repayments will be fixed at the interest rate you have locked in for the fixed term you have chosen. However, if your fixed term is coming to an end, you may find that your lender resets your interest rate to a new, higher variable home loan rate.

Alternatively, if you are considering refixing, it should be noted that lenders have been raising fixed rates in preparation for these cash rate hikes for some time now. The interest rate you managed to lock in, say, two years ago may now be significantly higher.

  • If your mortgage lender isn’t listed above, they probably haven’t made an announcement yet. To be notified when your lender increases their rates, please visit RateCity rate tracking page.

Bernadine J. Perkins