The Commonwealth Bank of Australia has become the last big four bank to announce that it will be passing on the Reserve Bank’s latest cash rate hike to variable mortgage customers.
Effective May 12, CBA will raise its variable mortgage rates for new customers by 0.25 percentage points. See the table below for the rate changes.
Note: Rates are for owner-occupiers paying principal and interest. Note LVR requirements may apply
Following this latest rate move from CBA, here’s how the big four banks now stack up, according to RateCity.com.au:
Note: Rates are for owner-occupiers paying principal and interest. LVR requirements may apply to qualify
Sally Tindall (pictured above), RateCity.com.au research director, said that for many borrowers, the news of another hike has been met with despair.
“This 11th rate hike could be the one that sinks some families’ budgets into the red,” Tindall said. “While the majority of variable customers will be charged higher rates from next Friday, the extra money won’t come out of their bank accounts for another six to 10 weeks.
“If you don’t think you’ll be able to pay for this 11th hike, use the next couple of months to find out what your options are. Your bank should be one of your first points of call, but it’s also worth seeking out some independent financial advice. The National Debt Helpline can put you in touch with a financial counsellor at no cost, who can help you work out a plan to get through.”
NAB was the first major bank to announce the rate hike, effective May 12. ANZ’s home loan rates will likewise lift by 0.25% p.a. from May 12. The rate changes at Westpac will take effect on May 16.
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