Following the RBA going back-to-back with 50 basis point increases, the major banks are sitting on their hands with increases to variable home loan rates expected. 

In previous months, the big-four have taken some time to react post-cash rate increase however have passed on the increases of 25 basis points and 50 basis points in full to variable home loan rate customers. 

See how the major banks reacted in June, while watch this space for further announcements following July's cash rate decision.

CommBank 

Australia's largest bank is the first to bite following the RBA's July cash rate decision, increasing variable home loan rates by 50 basis points from 15 July 2022. 

CommBank's new standard variable reference rates are:

  • Owner Occupier Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a. to 5.80% p.a.
  • Investor Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a. to 6.38% p.a.
  • Owner Occupier Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.29% p.a.
  • Investor Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.64% p.a.

Comparison rates are to be published from 15 July 2022 as the new rates come into effect. 

ANZ 

ANZ has increased variable home loan rates by 50 basis points in line with RBA's July decision from 15 July 2022.

ANZ's new standard variable reference rates are:

  • Owner Occupier Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a. to 5.64% p.a.
  • Investor Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a. to 6.24% p.a.
  • Owner Occupier Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.19% p.a.
  • Investor Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.49% p.a.

Comparison rates are to be published from 15 July 2022 as the new rates come into effect. 

ANZ Head of Australian Economics David Plank noted the RBA cited strong demand, a tight labour market and capacity constraints are key factors to determining July's 50 basis point increase.

"Job vacancies and ANZ Job Ads indicate the labour market is still tightening, increasing the urgency of the RBA's need to get to at least neutral," Mr Plank said. 

"We view the 50 basis point move in August as a 'bring forward' on our previous call (of 25 basis points), rather than a move to a higher terminal rate."

NAB 

Following the lead of the RBA, NAB is set to increase variable home loan rates by 50 basis points from 15 July 2022.

NAB's new base variable reference rates are:

  • Owner Occupier Principal and Interest Base Variable Rate home loans will increase by 0.50% p.a. to 5.64% p.a.
  • Investor Principal and Interest Base Variable Rate home loans will increase by 0.50% p.a. to 6.16% p.a.
  • Owner Occupier Interest Only Base Variable Rate home loans will increase by 0.50% p.a. to 5.68% p.a.
  • Investor Interest Only Base Variable Rate home loans will increase by 0.50% p.a. to 6.01% p.a.

NAB Group Executive of Personal Banking Rachel Slade said NAB was determined to work closely with customers to provide support throughout the rapidly changing rate environment.

“Banks are here to serve their customers, so regardless of who you bank with, the first step is a conversation with a banker so we can find the best way to support you,” Ms Slade said.

“Overall, our customers are in good position with many ahead on their repayments." 

Westpac 

From 20 July Westpac will increase variable home loan rates by 50 basis points for new and existing customers.

From 22 July, the Westpac Life savings account base interest rate will also get a bump to 1.35% p.a.

This means its popular under-30s savings account rate could get boosted to 3.00% p.a.

The major bank is also offering a 2.50% p.a. 12-23 month term deposit rate, accessible from 8 July.

“We considered several factors in making this decision including the 0.50% rise in the official cash rate and ongoing increases in the cost of funding, as well as the needs of both borrowers and depositors,” said Chris de Bruin, Westpac Chief Executive Consumer and Business Banking.

Westpac Chief Economist Bill Evans said since the RBA began announcing the cash rate publicly in 1990 it has never raised the cash rate in two consecutive meetings by 50 basis points each.

"However, the Governor’s (RBA) statement made no reference to that historical precedent something that may have been done if he was signalling the intention to scale back the moves," Mr Evans said. 

Westpac expects the RBA to go back-to-back-to-back, like the early 00s Brisbane Lions, with another 50 basis point increase to the cash rate at its meeting come August. 

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.
6.06% 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
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
 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 Alex Kondratiev via Unsplash 



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