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Who has announced rate hikes for home loan customers in May?

Alex Ritchie avatar
Alex Ritchie
- 4 min read
Who has announced rate hikes for home loan customers in May?

Check out our live bank rate hike tracker now.

The Reserve Bank of Australia (RBA) hiked the cash rate by 25 basis points to 3.85%, the 11th increase in this cycle of tightening. Home loan customers may be holding their breath waiting to hear when their lenders will be passing this interest rate increase on to them. 

So, which banks and lenders have already announced rate hikes are coming for mortgage customers? At the time of publishing, 28 home loan lenders have revealed they will be increasing variable home loan rates – including the big four banks.

This latest cash rate hike means that homeowners with a loan balance of $750,000 could be paying $1,587 more in mortgage payments than they were in April last year, according to RateCity research. That is the equivalent of paying for a flight to the USA, or buying a Macbook Air, every single month. 

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Which lenders have announced mortgage interest rate increases?

Lender

Rate Change

Date Effective

Commonwealth Bank of Australia

0.25%

11-May-23

Westpac

0.25%

16-May-23

NAB

0.25%

12-May-23

ANZ

0.25%

12-May-23

AMP Bank 

0.25%

4-May-23

Athena Home Loans  

0.25%

4-May-23

Auswide Bank

0.25%

11-May-23

Macquarie Bank 

0.25%

19-May-23

St.George

0.25%

16-May-23

Bank of Melbourne

0.25%

16-May-23

BankSA

0.25%

16-May-23

FreedomLend  

0.25%

5-May-23

loans.com.au

0.25%

4-May-23

ING

0.25%

9-May-23

Bankwest

0.25%

12-May-23

MyState Bank 

0.25%

15-May-23

Bendigo & Adelaide Bank 

0.25%

12-May-23

Suncorp Group 

0.25%

12-May-23

Bank of Queensland

0.25%

9-May-23

ME Bank

0.25%

13-May-23

Virgin Money

0.25%

9-May-23

Newcastle Permanent

0.25%

12-May-23

Greater Bank

0.25%

11-May-23

Credit Union SA 

0.25%

11-May-23

Bank Australia 

0.25%

17-May-23

RAMS

0.25%

16-May-23

Great Southern Bank

0.25%

12-May-23

Australian Military Bank 

0.25%

16-May-23

Source: RateCity.com.au. Data accurate as of 08/05/2023

  • Is your lender not on the list yet? Check our live RBA cash rate tracker page and hop on our mailing list to be notified when your lender announces rate changes. 

How much more will your mortgage repayments be following the May cash rate hike?

The RBA’s cash rate now sits at 3.85%, however, the mortgage rate pain may not be over yet. ANZ has tipped that we can expect at least one more increase to the cash rate in 2023, bringing its peak to 4.10%. 

Given that the cash rate was only 0.10% in April 2022, this means homeowners could experience a 4 percentage point increase on their interest rates in just 18 months. This would be one of the sharpest increases to home loan rates in the RBA’s history. The impact of this is likely to be severe on the mortgage repayments and household budgets of everyday Australians 

Exactly how much higher could your mortgage repayments climb? RateCity has crunched the numbers on several home loan amounts to determine what your repayments could be after the May hike - if your lender has passed on every increase in full. 

For a homeowner on a $750,000 home loan, your repayments could now be $1,587 more than they were before the first rate hike in 2022. 

These repayment calculations are based on a 25-year loan, at an initial interest rate of 2.86% in April - as per the RBA’s average existing customer rate at the time

$500,000 home loan: mortgage repayments after cash rate hikes

Month

Estimated repayment

Difference

Apr-22

$2,335

/

May-22

$2,400

$65

Feb-23

$3,243

$908

Mar-23

$3,318

$983

May-23

$3,393

$1,058

$750,000 home loan: mortgage repayments after cash rate hikes

Month

Estimated repayment

Difference

Apr-22

$3,502

/

May-22

$3,599

$97

Feb-23

$4,864

$1,362

Mar-23

$4,977

$1,474

May-23

$5,090

$1,587

$900,000 home loan: mortgage repayments after cash rate hikes

Month

Estimated repayment

Difference

Apr-22

$4,203

/

May-22

$4,319

$117

Feb-23

$5,837

$1,634

Mar-23

$5,972

$1,769

May-23

$6,108

$1,905

$1,100,000 home loan: mortgage repayments after cash rate hikes

Month

Estimated repayment

Difference

Apr-22

$5,137

/

May-22

$5,279

$142

Feb-23

$7,134

$1,998

Mar-23

$7,299

$2,163

May-23

$7,465

$2,328

Compare home loans in Australia

Product database updated 17 Apr, 2024

This article was reviewed by Personal Finance Editor Mark Bristow before it was published as part of RateCity's Fact Check process.

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