Finance Big banks begin to pass on RBA rate hike
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Big banks begin to pass on RBA rate hike

Mortgage holders hit hard by interest rises

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Three of the four big banks have matched this week’s move by the central bank and raised their variable home loan rates.

The Commonwealth Bank of Australia and ANZ said on Thursday they would lift rates for owner-occupier and investor mortgages will by 50 basis points on August 12.

Westpac will do the same from August 18.

The CBA was the first to move on Thursday morning, followed by the ANZ by lunchtime and Westpac later in the afternoon.

The increase matches Tuesday’s move by the Reserve Bank of Australia, which lifted its key cash interest rate to 1.85 per cent from 1.35 per cent.

Commonwealth Bank retail banking chief Angus Sullivan said the lender was also offering a limited four-year fixed rate for borrowers wanting more certainty around repayments.

The special rate of 4.99 per cent for owner-occupiers is available from Friday.

“This special is a reduction of 1.60 per cent per annum from our current four-year fixed-package rate and has been rolled out especially to support customers looking for certainty in a changing rate environment,” Mr Sullivan said.

The comparison rate for the Commonwealth’s new offer is 5.46 per cent a year.

The CBA will also increase deposit rates for two products by 50 basis points.

Some smaller lenders, including Macquarie Bank and BOQ have announced similar mortgage increases.

National Australia Bank, the last of the country’s big four banks, is yet to respond to Tuesday’s hike in official interest rates.

-with AAP