Customers on variable rates set to see monthly costs jump even further
More major banks have confirmed that they will be passing on the latest Reserve Bank of Australia (RBA) interest rate hike to borrowers.
Macquarie Bank was the first to announce that it is passing on the 25-basis-point increase to all borrowers on variable rates.
Ben Perham, head of personal banking at Macquarie Bank, said: “In response to the RBA’s announcement earlier today, we will be increasing both our variable home loan rates, and the interest rates available on our everyday variable rate bank accounts.
"To give our customers more time to adjust to the higher interest rate environment, we are once again delaying this increase by more than two weeks. If your financial circumstances have changed, or you’re concerned about meeting your home loan repayments, we encourage you to get in touch with our team to understand what support may be available.”
Commonwealth Bank has now confirmed it will be passing on the RBA's latest move to all customers on variable interest rates on 15 May.
Commenting on the changes, Angus Sullivan, CBA’s group executive retail banking, acknowledged that further rate increases will add pressure to borrowers.
“Our focus is on supporting customers to stay on top of their finances with practical tools, clear guidance and access to help when it’s needed,” Sullivan said.
ANZ will also wait until 15 May to pass the rate hike onto borrowers.
ANZ group executive Australia retail Pedro Rodeia said: “We recognise that many Australian households are feeling pressure from the cost of living amid current global uncertainty.
“If you are concerned about your finances, we encourage you to speak with us early so we can help. Our team is ready to provide guidance, practical tools and tailored support to help you manage your finances and plan with confidence.”
A 25-basis-point increase to variable home loan rates will increase monthly repayments by approximately $80 on a variable home loan of $500,000 for an owner occupier loan with principal and interest repayments.
Check out more coverage on Tuesday's RBA call below:
