The central bank made the call to increase the cash rate by 25 basis points to 4.35% last Tuesday – the highest it's been in 12 years. 

While some banks were quick off the mark, increasing home loan interest rates within days of the rate hike, many more – including three of the big four banks – waited until this week to do so. 

Follow the latest changes as they happen: Home loan rate changes after RBA's 0.25% rise

If you hold a variable mortgage, you’ll likely have some leeway.

Banks and lenders must give existing borrowers at least three week’s notice before changing their repayments.

However, if you’re in the market for a new home loan, here’s a breakdown of the biggest interest rate changes you’ll want to know about.

Big four banks passing on rate hike in full to home loan customers 

From today, CommBank, NAB, and ANZ will each increase the interest rates offered on variable home loan products by the full 25 basis point hike. 

Westpac customers won’t be sitting out the hike. The final member of the quartet will hike its variable rates early next week.

The new standard variable rates offered to owner-occupiers making principal and interest (P&I) repayments by today’s movers include: 

Bank 

Home loan

Loan-to-value ratio (LVR)

Interest rate 

Comparison rate* 

CommBank

Standard Variable Rate with Wealth Package
(with discount margin offer)

80% to 90%

6.94% p.a.

7.31%  p.a.

NAB

NAB Base Variable Rate

≤95% 

6.84% p.a.

6.88% p.a. 

ANZ

ANZ Standard Variable

≤80%

7.24% p.a.

7.24% p.a.

CommBank’s standard variable interest rate has also been hiked by 25 basis points to 8.80% p.a. for owner-occupiers or 9.38% p.a. for investors. 

Meanwhile, ANZ's standard variable rate, listed above, includes a discount of up to 1.40% on its new index rate for P&I repayments: 8.64% p.a.

ING hikes variable home loan rates by 25 basis points 

Not to be overshadowed by their larger peers, other Aussie banking majors also joined in on the hiking action.

ING was first out of the gates, increasing its variable home loan interest rates by 25 basis points on Tuesday, with changes including:

  • Mortgage Simplifier, owner-occupier, P&I, ≤80% LVR: 25 basis point increase to 6.14% p.a. (6.17% p.a. comparison rate*) 
  • Mortgage Simplifier, investor, P&I, ≤80% LVR: 25 basis point increase to 6.34% p.a. (6.37% p.a. comparison rate*) 

Bendigo Bank increases fixed and variable rates by up to 25 basis points 

Unlike many others, Bendigo Bank upped both variable and fixed home loan interest rates this week. Some of its new variable rates include:

  • Express Variable, owner-occupier, P&I, ≤90% LVR: 25 basis point increase to 5.97% p.a. (6.12% p.a. comparison rate*) 
  • Complete Home Loan, owner-occupier, P&I, 80% to 90% LVR: 25 basis point increase to 7.49% p.a. (7.71% p.a. comparison rate*) 
  •  Express Variable, investment, P&I, ≤90% LVR: 25 basis point increase to 6.22% p.a. (6.37% p.a. comparison rate*) 

Meanwhile, key changes to its fixed home loan interest rates include:

  • Express Fixed one year, owner-occupier, P&I, ≤90% LVR: 25 basis point increase to 6.59% (6.18% p.a. comparison rate*) 
  • Express Fixed three years, owner-occupier, P&I, ≤90% LVR: 25 basis point increase to 6.49% p.a. (6.27% p.a. comparison rate*) 

Macquarie Bank ups variable interest rates by 25 basis points 

Finally, joining in on the action this week was Macquarie Bank, hiking variable home loan rates by 25 basis points on Friday. 

The bank’s new rates include:

  • Basic Variable, owner-occupier, P&I, ≤70% LVR: 25 basis point increase to 6.14% p.a. (6.16% p.a. comparison rate*) 
  • Basic Variable, investor, P&I, ≤70% LVR: 25 basis point increase to 6.34% p.a. (6.36% p.a. comparison rate*)

Advertisement 

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by Joshua Case on Unsplash.



Ready, Set, Buy!


Learn everything you need to know about buying property – from choosing the right property and home loan, to the purchasing process, tips to save money and more!

With bonus Q&A sheet and Crossword!

Download Free
By subscribing you agree to our privacy policy