RBA rate rise: Is your lender increasing its interest rates?
The RBA has increased the cash rate for the seventh month in a row – it currently sits at 2.85%.
The Reserve Bank of Australia (RBA) has announced another cash rate rise in an attempt to bring inflation under control. The cash rate now sits at 2.85% – that's 275 basis points higher than May this year and the highest Australia has seen since April 2013.
The RBA began raising the cash rate in May with an increase of 25 basis points. For 4 consecutive months, it increased the cash rate by 50 basis points. The past 2 months, October and November, have seen a more conservative 25-basis-point increase – leaving the current cash rate sitting at 2.85%.
Although the previous 2 rate rises have been a more conservative increase, any rate rise impacts Australian borrowers, who are facing higher mortgage repayments and the current cost of living crisis. Finder's Consumer Sentiment Tracker has shown that 50% of households in Australia say putting a roof over their head is their most stressful financial asset. With another rate increase, this will be felt even more.
Banks and lenders will now change their variable rate home loans based on the current 2.85% cash rate. Lenders can take days, or sometimes weeks, to publish their interest rate announcements. We will update the table below once more lenders announce interest rate decisions.
|Lender||New rate||Change||Effective date|
|Bendigo Bank||4.54%||+0.25%||11 November|
|ME Bank||4.54%||+0.25%||12 November|
|Bank of Queensland||4.69%||+0.25%||11 November|
*For each lender, we've chosen the lowest variable owner-occupier rate for a borrower with a 20% deposit.
What to do when your interest rates go up?
Rising interest rates are putting increased pressure on Australian households. If you're worried about rising repayments, here are some steps to take:
- Check your current interest rate. You need to start by looking at your current rate and how much your repayments cost each month.
- Keep an eye out for communication from your lender. When your rate rises, your lender should notify you.
- Recalculate your loan repayment costs. Take a look at how much the rate increase will cost you with a mortgage repayment calculator.
- 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.