- Find out who has moved at RateCity.com.au’s RBA rate tracker
Australia’s largest bank, Commonwealth Bank of Australia, has announced it will pass on yesterday’s full June RBA cash rate hike to its variable home loan customers.
From 17 June, CBA mortgage rates for new and existing customers will go up by 0.50 percentage points.
CBA variable rates for owner-occupiers paying principal & interest – effective 17 June
Calculations are based on an existing customer with a $500K debt and 25 years remaining
|Old rate||New rate||Increase in repayments, $500K|
Source: RateCity.com.au. Repayments are for an owner-occupier paying principal and interest with a $500,000 loan over 25 years. An LVR of 70% applies to CBA’s lowest variable rate. Rates effective 17 June.
What is CBA doing for savers?
Commonwealth Bank of Australia has also announced it will hike the bonus rate on its popular GoalSaver and YouthSaver accounts by the full 0.50 percentage points on 17 June.
At this stage there are no changes to the NetBank Saver account, which was the only savings account CBA increased the rate on by 0.25 percentage points last month
CBA savings rates – impact of 0.50% hike
|Max current rate||Max new rate||Change|
0.50% for 5 mths then 0.30%
0.50% for 5 mths then 0.30%
Source: RateCity.com.au. Conditions for max rate apply.
RateCity.com.au research director, Sally Tindall, said: “Two of the big four banks have now shown their hands – it’s just a matter of time before others follow suit.”
“CBA is hiking variable home loan rates by the full 0.50 percentage points, taking its lowest variable rate to 2.94 per cent. Two months ago, the bank’s lowest rate was just 2.19 per cent,” she said.
“The days of rates under 2 per cent are now well and truly numbered. Once the low-cost lenders factor in their RBA hikes, we expect there will be no variable rates left under 2 per cent.
“After a lacklustre response in May for its savings customers, Australia’s biggest bank has stepped up this month, passing on the double rate hike, in full, to its GoalSaver and Youthsaver customers.
“This is a coup for CBA customers with these savings accounts.
“While Netbank savers missed out this time around, they did benefit from last month’s 0.25 percentage points hike, while GoalSaver and Youthsaver rates were left untouched.
“By passing on the full hike to two of its most popular accounts, CBA has set the benchmark for the banks that now have to follow with their savings announcements.
“This will hopefully force other banks to pass on this historic double hike, in full, to their savings customers.
“Customers with a GoalSaver will see their maximum interest rate triple overnight when the hike kicks in on 17 June. However, the increase will be applied to the bonus rate, so customers will need to keep meeting the bank’s monthly terms and conditions to secure this rate.
“Kids with a Youthsaver account will see their rate more than double in just over a week to 0.95 per cent. However, this rate still falls short of the market leaders, which are in some cases above 2 per cent,” she said.