Commonwealth Bank final big four member to increase interest rates

Aussie homeowners are in for pain as the final major bank hikes interest rates yet again.

Commonwealth Bank has raised interest rates following other big four banks following the Reserve Bank’s latest hike.
CBA lifted its variable home loan rates by 0.25 per cent, in a move that’s matched Westpac, ANZ, and NAB.

Westpac and the ANZ announced on Thursday they’d be increasing the variable interest rates across Australian home loans by 0.25 per cent a year. NAB was the first to move on Wednesday.

ANZ said the change to variable home loan interest rates will take effect from May 12 and increase monthly repayments by $68 on a variable home loan of $450,000 for an owner occupier paying principal and interest.

Westpac is also increasing the home loan variable interest rate by 0.25 per cent per annum for new and existing customers, but from May 16.

All savings and home loan variable rate changes announced today will be effective 12 May 2023. Picture: NCA NewsWire / Damian Shaw

It also announced that some savers would also benefit from the rate hike.

The bank’s Youthsaver bonus rate will increase by 0.25 per cent to 4.50 per cent and its Goalsaver with bonus interest rate will increase by 0.25% p.a. to 4.40% p.a.

All savings and home loan variable rate changes announced today will be effective 12 May 2023.

The changes come after the RBA shocked markets with its Tuesday announcement that it would raise the official cash rate by 25 basis points to 3.85 per cent – the highest level in 11 years.

It followed a pause in April on its aggressive strategy of 10 consecutive rate rises to counter inflation well above its target of 2-3 per cent.

All four banks have also said anyone struggling with repayments should contact them.

“We understand the combination of increasing interest rates and the rising cost of living is creating challenges for some customers, which is why we encourage any customer with concerns to message us in the CommBank app to start a conversation with one of our specialists – the sooner that conversation begins, the sooner we can begin to work together to find solutions based on each customer’s individual circumstances,” CBA group executive Angus Sullivan said.

“We have a number of tools available to help our customers understand these changes and manage their home loans, but if you are facing difficulty, contact our experienced teams as early as you can to discuss additional personalised support,” ANZ Group Executive Australia Retail, Maile Carnegie said.

Westpac chief executive of consumer and business banking Chris de Bruin said help was available.

“We know customers are looking carefully at their budgets as interest rates rise. While many are adjusting to making higher repayments, we understand others may need extra help,” he said.

“To assist we’re reaching out to some customers we believe may need additional support, we also encourage any customer doing it tough to give us a call,” said Mr de Bruin.