After several days of silence following the Reserve Bank’s decision to raise interest rates by 0.5 percentage point on Tuesday, four lenders have announced that they will pass the OCR hike to mortgage customers in full.
The move was a record fifth consecutive month that the OCR was increased, taking the cash rate target to a seven-year high of 2.35%, as the Reserve Bank races to bring inflation under control.
National Australia Bank, Commonwealth Bank, ANZ, and Bendigo and Adelaide Bank all announced a 0.5 percentage increase in their home loan rates, with the change to take effect this Friday for all four banks, The Sydney Morning Herald reported.
Bankwest will also lift the standard variable rate for new existing home loans by an additional 0.5% per annum, while Macquarie will raise variable home loan reference rates by an extra 0.5% per annum, both from Sept. 16, ABC reported.
Analysis from RateCity showed that passing the September’s interest rate rise in full will see the average owner-occupier’s monthly repayments increase by $144 this month. Since RBA started lifting rates in May, repayments will now increase by a total $1,000 on an $800,000 loan, SMH reported.
