Commonwealth Bank, ANZ, Westpac to raise variable mortgage rates by 0.25 per cent after RBA rate hike

The Commonwealth Bank is the first major bank to announce an increase in mortgage rates, matching the Reserve Bank’s 25-basis-point increase from May 20.

The RBA raised official interest rates for the first time in more than a decade to curb surging inflation, with the cost of living up 5.1 per cent over the past year.

The CBA says it will raise home-loan variable interest rates by one quarter of a percentage point, in line with the RBA’s increase.

That brings the standard variable interest rate for owner-occupiers paying principal and interest to 4.8 per cent.

The equivalent home-loan rate for investors will increase by 25 basis points as well, to 5.38 per cent.

ANZ also announced it would pass the full amount on to home loan customers.

For standard variable rate owner-occupiers paying principal and interest, the index rate will change to 4.64 per cent, from 4.39 per cent.

The bank said that this will increase monthly repayments by $57 a month on a $450,000 home loan.

For those on interest-only loans, the interest rate will rise to 5.19 per cent.

ANZ said the new rates will take effect from May 13.

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