RBA rate rise: Is your lender increasing its interest rate (again)?
The RBA has increased the cash rate for the eighth month in a row – it now sits at 3.10%.
The Reserve Bank of Australia (RBA) has announced another cash rate rise in an attempt to bring inflation under control. The current cash rate sits at 3.10% – that's 300 basis points higher than May and the highest Australia has seen since April 2013.
Although the previous 3 rate rises have been a more conservative increase, even a smaller rate rise impacts Australians who are facing higher mortgage repayments as well as the cost of living crisis. Finder's Consumer Sentiment Tracker has shown that 29% of Australians are worried about being able to afford their monthly repayments. With another rate rise, this will be felt even more.
Banks and lenders base their interest rates on the national cash rate. While there's no obligation for them to change their variable home loan rates in line with the RBA announcement, most do. Banks can take anywhere from days to weeks to publish their interest rate announcements. We're tracking every lender increasing home loan interest rates off the back of the rate hike. We'll keep the table below updated as lenders continue to update their interest rate decisions.
|Lender||New rate||Change||Effective date|
|Bank of Queensland||4.79%||+0.25%||09 December|
|Virgin Money||4.74%||+0.25%||09 December|
|Bendigo Bank||4.79%||+0.25%||16 December|
|ME Bank||4.79%||+0.25%||10 December|
*For each lender, we've chosen the lowest variable owner-occupier rate for a borrower with a 20% deposit.
What should I do if my interest rate goes up?
Rising interest rates are causing stress for a lot of Australian households. Here are some steps to take if you're concerned about rising repayments.
- Check your current interest rate. You need to start by looking at your current rate and how much the repayments will cost you each month.
- Keep an eye on communication from your lender. When your rate rises your lender should let you know.
- Recalculate your loan repayment costs. Calculate how much your repayments will cost you with a mortgage repayment calculator.
- Call your bank and ask for an instant rate discount. Call your bank today and ask it for a rate discount. You might be able to switch to an interest-only home loan for 12–24 months or get a 6-month mortgage holiday. If it doesn't offer a lower rate, consider switching to a better deal.
- Consider switching to a better deal. Once you have a clear idea of your interest rate and costs, look for a better deal on the market and consider switching.