CBA hikes home loan rates and some savings accounts by 0.50%

Australia’s largest bank, CBA, is the first of the big four to announce it will pass yesterday’s double cash rate hike onto its variable home loan customers.

From 15 July, CBA mortgage rates for new and existing customers will go up by 0.50 percentage points. After these hikes, CBA will have no advertised rates under 3 per cent.

CBA variable rates for owner-occupiers paying principal & interest – effective 15 July

Calculations are based on an existing customer with a $500K debt and 25 years remaining

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 15 July.

What is CBA doing for savers?

CBA has also announced it will increase the bonus rates on its popular GoalSaver and YouthSaver accounts by the full 0.50 percentage points.

At this stage there are no changes to the NetBank Saver account.

The bank will also introduce a new 15-month term deposit offer of 2.50 per cent. Analysis from RateCity.com.au shows 20 banks are already offering term deposit rates of over 2.5 per cent on terms less than 15 months.

CBA savings rates – impact of 0.50% hike – effective 15 July

Source: RateCity.com.au. Conditions for max rate apply.

RateCity.com.au research director, Sally Tindall, said: “CBA has declared its hand and it’s now just a matter of time before the others follow.”

“CBA has announced it will hike its variable home loan rates by the full 0.50 percentage points, taking its lowest rate to 3.29 per cent. This is a huge increase from three months ago, when the bank’s lowest variable was just 2.19 per cent,” she said.

“The days of variable rates starting with a ‘2’ are now numbered. We expect there will be less than a dozen lenders offering variable rates under 3 per cent once all the hikes filter through.

“What’s fantastic to see is Australia’s biggest bank stepping up to the plate, delivering a much-needed boost to millions of savers. The bank has hiked two of its most popular savings accounts by the full 0.50 percentage points, which is great news for these customers.

“CBA has set the pace for savers following this historic cash rate rise. This will put pressure on other banks to deliver a double hike for their savings customers.

“GoalSaver customers will soon get a maximum interest rate of 1.25 per cent, the highest rate the bank has offered on this account since July 2019 for balances under $50,000. However, the extra interest will only apply if customers meet the bank’s monthly terms and conditions.

“While CBA’s two million Netbank Saver customers have missed out, this might be the push these savers need to consider a more competitive account,” she said.

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