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Big four banks pass on rate hikes to customers: who has hiked rates so far?

Alex Ritchie avatar
Alex Ritchie
- 3 min read
Big four banks pass on rate hikes to customers: who has hiked rates so far?

The Reserve Bank of Australia hiked the cash rate for the first time in over a decade by 0.25%. And some of Australia’s biggest banks have already passed on this hike to their customers.

The big four banks have all announced they will be passing on this 0.25% hike to their new and existing home loan customers.

Big four bank interest rate increase post-RBA cash rate hike

Variable mortgage hikesNew lowest variable rateEffective date
CBA

0.25%

2.44%

20 May

Westpac

0.25%

2.34%

17 May

NAB

0.25%

2.44%

13 May

ANZ

0.25%

2.44%

13 May

Source: RateCity.com.au

For home loan customers with a variable rate home loan with a big four bank, this means they may find their next monthly repayments are now higher.

Which lenders have hiked interest rates so far?

It’s not just the big banks that have passed on the 0.25% rate hike, with many institutions and big bank subsidiaries announcing they will be increasing their interest rates.

As of the time of publishing, multiple lenders that aren’t the big four banks have announced they will pass on this rate hike to customers:

LenderVariable mortgage hikesEffective date
St. George

0.25%

17 May

Bank of Melbourne

0.25%

17 May

Bank SA

0.25%

17 May

Bankwest

0.25%

18 May

Macquarie Bank

0.25%

13 May

Suncorp

0.25%

18 May

RAMS

0.25%

17 May

Reduce Home Loans

0.20% (new customers only)

3 May

Horizon Bank

0.25%

4 May

Source: RateCity.com.au

One lender has bucked the trend and revealed they will not be passing on the rate hike to new customers. Homestar Finance has left their lowest variable rate unchanged for new customers, with no word yet on how they may move rates for existing customers.

  • Is your bank not on the list? View live updates of who has moved interest rates at RateCity’s RBA rate tracker

When can we next expect interest rate hikes?

Homeowners are not out of the woods yet, with many experts predicting that these increases to the cash rate will continue periodically for the next few years.

Previously, three out of the four big banks predicted that the cash rate would increase in May, but with a smaller hike of 0.15%. The increase of 0.25% possibly came to the shock of many experts at the big banks.

Westpac has since updated its forecast, stating that it expects an interest rate hike of 40 basis points by the RBA in the June meeting.

NAB however predicts another 25 basis points hike in June, July, August, and November, taking the target to 1.35% by the end of the year.

Whatever happens, it’s safe to assume that homeowners who have not yet prepared their finances for higher mortgage repayments may be feeling the pressure.

  • View live updates of who has moved interest rates at RateCity’s RBA rate tracker

Disclaimer

This article is over two years old, last updated on May 4, 2022. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

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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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