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RBA hikes cash rate: Is your lender raising your rate?

Posted: 7 June 2022 2:59 pm
News
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These lenders have announced interest rate rises for their home loan customers.

The Reserve Bank of Australia has lifted the cash rate by a whopping 0.5 percentage points. And lenders are responding by raising variable interest rates on their home loans.

This is bad news for borrowers because it means monthly loan repayments will increase.

In this table we're listing every lender that has confirmed it's lifting rates. Some lenders take time to announce a rate rise, so we will add to this table in the coming days.

LenderNew rateChangeEffective date
CBA2.94%50 basis points17 June
NAB2.94%50 basis points17 June
Westpac2.69%50 basis points21 June
ANZ3.04%50 basis points17 June
Bankwest3.03%50 basis points17 June
ING2.84%50 basis points15 June
Suncorp2.82%50 basis points17 June
ME Bank2.94%50 basis points18 June
Virgin Money2.99%50 basis points14 June
Bank of Queensland2.93%50 basis points14 June
Bank of Melbourne2.84%50 basis points21 June
Citi2.74%50 basis points17 June
St George2.39%50 basis points21 June
RAMS3.19%50 basis points21 June
BankSA2.84%50 basis points21 June
Household Capital5.70%50 basis points9 June
Macquarie2.99%50 basis points17 June

*For each lender we've chosen the lowest variable owner-occupier rate for a borrower with a 20% deposit.

It's not all bad news for your money, though. Several lenders have also announced that interest rates on savings accounts will rise.

I'm a borrower: What do I do?

First step, don't panic. Rates are rising and your home loan repayments are going to rise. But there are steps you can take to minimise the hit to your finances.

  • Compare and switch. Your lender may have just hiked your rate up. But were you on a good rate to start with? It's always worth checking what other lenders are offering and seeing if you can switch to a better deal.
  • Fix your rate. Fixed interest rates are higher than variable rates now. So you can't lock in a super low rate any more. But fixing now at least gives you certainty. You know you're on a higher rate, but it can't go any higher (during the fixed period).
  • Build up a savings buffer. It's always easier said than done, but the more cash you can save up now, the better you'll be able to handle more rate rises and other cost of living pressures.

Want to switch to a better home loan deal? Check out our home loan refinance guide.

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