Double trouble: CBA and ANZ hike mortgage rates

Double trouble: CBA and ANZ hike mortgage rates

Commonwealth Bank and ANZ have hiked home loan rates for their variable customers today, by 0.15 percentage points and 0.16 percentage points respectively.

Today’s hike by Australia’s largest and third-largest banks will mean higher mortgage repayments for millions of Australians.

NAB continues to be the only big four bank to hold out, with Westpac hiking rates last week.

Commonwealth Bank

Loan size 5.22% (old SVR) 5.37% (new SVR) Extra monthly repayment Extra cost annually
$300,000 $1,651 $1,679 $28 $335
$400,000 $2,201 $2,239 $37 $447
$500,000 $2,752 $2,798 $47 $559
$750,000 $4,128 $4,197 $70 $838
$1,000,000 $5,503 $5,597 $93 $1,117

ANZ

Loan size 5.20% (old SVR) 5.36% (new SVR) Extra monthly repayment Extra cost annually
$300,000 $1,647 $1,677 $30 $357
$400,000 $2,196 $2,236 $40 $476
$500,000 $2,746 $2,795 $50 $596
$750,000 $4,118 $4,193 $74 $893
$1,000,000 $5,491 $5,590 $99 $1,191

RateCity research director Sally Tindall said today’s hikes show that when one big bank pulls the trigger, their counterparts aren’t far behind.

“CBA and ANZ’s decision to hike rates hot on the heels of Westpac was a predicable step in what is becoming a well-worn routine.

“In fact, hiking on the same day means they can shoulder the backlash together.

“What this rate hike means is that the vast majority of variable-rate home owners will now be shelling out more on their mortgage each month.

NAB would do well to break free of tradition and find a different way to wear the additional expense,” she said.

“While Australia’s big banks might move like a flock of sheep it doesn’t mean their customers have to.

“If you live in your own home and own at least 20 per cent of it, start shopping around – you’ll be surprised at what rates are on offer.

“Plenty of lenders are ready and waiting to take on your business with rates as low as 3.44 per cent,” she said.

Notes: calculations are based on the banks’ standard variable rates for an owner-occupier paying principal and interest.

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