Australia’s Big Four banks and many major lenders announced they would raise interest rates on home loans to customers following the latest cash rate hike in September. So, has your lender announced if, and when, they will raise your rates?
Earlier this month, the Reserve Bank of Australia (RBA) announced that it would raise the key rate for the fifth consecutive month – the fourth consecutive month of double hikes (50 basis points). This means that homeowners on an adjustable rate home loan will likely see their interest rates go up another 0.50% and their mortgage payments go up yet again.
However, in September, unlike previous months, some lenders raised rates for customers by less than 50 basis points relative to the RBA, while some raised rates by more than that benchmark.
It is Australian mortgage lenders who have announced home loan rate hikes so far, with many more expected throughout the month.
Banks and lenders that announced rate hikes: September 2022
| Lender |
Rate change |
Effective date |
| Commonwealth Bank of Australia |
0.50% |
16 Sep 22 |
| Westpac |
0.50% |
19 Sep 22 |
| NAB |
0.50% |
16 Sep 22 |
| ANZ |
0.50% |
16 Sep 22 |
| australian bank |
0.50% |
20-Sep-22 |
| first mac |
0.60% |
9 Sep 22 |
| loans.com.au |
0.50% |
8 Sep 22 |
| Bankwest |
0.50% |
16 Sep 22 |
| Australian unit |
0.50% |
16 Sep 22 |
| Big Bank |
0.45% |
14 Sep 22 |
| Nano |
0.50% |
20-Sep-22 |
| MyState Bank |
0.50% |
19 Sep 22 |
| Aussie |
0.50% |
12 Sep 22 |
| Horizon Bank |
0.50% |
9 Sep 22 |
| Bendigo Bank |
0.50% |
16 Sep 22 |
| Macquarie Bank |
0.50% |
16 Sep 22 |
| ING |
0.50% |
14 Sep 22 |
| Suncorp Bank |
0.50% |
16 Sep 22 |
| Bank of Queensland |
0.50% |
16 Sep 22 |
| Bank ME |
0.50% |
17 Sep 22 |
| blank silver |
0.50% |
16 Sep 22 |
| BankVic |
0.45% |
20-Sep-22 |
| St. George’s Bank |
0.50% |
20-Sep-22 |
| Bank of Melbourne |
0.50% |
20-Sep-22 |
| Bank SA |
0.50% |
20-Sep-22 |
| UCL |
0.50% |
12 Sep 22 |
| Permanent Newcastle |
0.50% |
16 Sep 22 |
| GPA |
0.50% |
16 Sep 22 |
| RAMS |
0.50% |
20-Sep-22 |
Source: RateCity.com.au. Data accurate as of 09/12/22
How much more could you pay after the September hikes?
At press time, 30 lenders have announced increases in variable customer interest rates. Interestingly, Greater Bank and BankVic both revealed that they would only pass hikes of 45 basis points, instead of 50.
This month, the big four banks took three to six days to reveal that they were passing the RBA-led rate hike on to customers in full. This is the longest period of time borrowers have had to wait to find out when these big banks will change their mortgage rates and increase repayments.
For homeowners across the country, you may be wondering how much your home loan repayments will be as a result of this latest cash rate hike.
RateCity calculated the numbers for several home loan amounts to determine what your repayments might be if your lender passed on each cash rate hike in full. These repayment calculations are based on a 25-year loan, at an initial interest rate of 2.86% in April – based on the RBA’s average existing customer rate.
$500,000 home loan: payment increases due to rising cash rates
| Month | Estimated refund | Difference |
| Apr-22 |
$2,335 |
|
| May-22 |
$2,400 |
$65 |
| Jun-22 |
$2,532 |
$197 |
| Jul-22 |
$2,667 |
$333 |
| August 22 |
$2,807 |
$472 |
| Sep 22 |
$2,949 |
$614 |
$750,000 home loan: payment increases due to rising cash rates
| Month | Estimated refund | Difference |
| Apr-22 |
$3,502 |
|
| May-22 |
$3,599 |
$97 |
| Jun-22 |
$3,798 |
$295 |
| Jul-22 |
$4,001 |
$499 |
| August 22 |
$4,210 |
$708 |
| Sep 22 |
$4,424 |
$922 |
$900,000 home loan: payment increases due to rising cash rates
| Month | Estimated refund | Difference |
| Apr-22 |
$4,203 |
|
| May-22 |
$4,319 |
$117 |
| Jun-22 |
$4,557 |
$354 |
| Jul-22 |
$4,801 |
$599 |
| August 22 |
$5,052 |
$849 |
| Sep 22 |
$5,309 |
$1,106 |
$1,100,000 home loan: payments increase due to rising cash rates
| Month | Estimated refund | Difference |
| Apr-22 |
$5,137 |
|
| May-22 |
$5,279 |
$142 |
| Jun-22 |
$5,570 |
$433 |
| Jul-22 |
$5,868 |
$732 |
| August 22 |
$6,175 |
$1,038 |
| Sep 22 |
$6,488 |
$1,352 |
Source: RateCity.com.au. Hypothetical example based on a loan term of 25 years and an initial interest rate of 2.86%, based on the average rate of existing RBA customers in April 2022. Excludes fees.
If your home loan repayments are slipping into unaffordable territory and your household budget is starting to suffer, it may be worth considering your options. You might consider making additional repayments to help reduce your loan amount, or even consider refinancing.
Switching to a lower-rate home loan is one option homeowners have to give themselves a rate reduction during times of rising rates. You will need to ensure that you meet the eligibility criteria and that your finances are sound before continuing.
A lower-rate home loan could provide some much-needed breathing room following the latest round of interest increases. That being said, remember that there is more to a loan than just the interest rate offered, and it’s best to compare factors like fees, features, and the lender themselves before making the switch.
Compare low rate refinance home loans