Where are these ASX lenders on mortgage rates
The Reserve Bank of Australia (RBA) last week announced a 25 basis point hike in official interest rates to rein in soaring consumer prices. RBA Governor Philip Lowe on Tuesday announced a 25 basis point interest rate hike to 0.35%. “The economy has proven resilient and inflation has risen faster and higher than expected,” Lower said in a statement.
This rate hike by the Australian central bank was the first in more than 10 years. As a result of this cash rate hike, Australia’s four largest banks matched the RBA’s increase. The “Big 4” decided to pass the entire rate hike on to mortgage customers, ending the era of ultra-cheap mortgages. Variable rate home loans are expected to increase by 0.25% for all lenders.
Commonwealth Bank of Australia (ASX: ABC)
Commonwealth Bank was the first lender to raise mortgage rates. The CBA has announced that it will increase variable interest rates on home loans by a quarter of a percentage point effective May 20, 2022, raising the standard variable interest rate for homeowners paying principal and interest at 4.8%. Similarly, the housing equivalent loan rate for investors would increase by 25 basis points to 5.38%. The ABC has not announced any changes to filing rates.
Australia and New Zealand Banking Group Ltd (ASX: ANZ)
ANZ has decided to raise variable rates on home loans by the same amount. The changes would come into effect on May 13, 2022. The rate would increase from 4.39% to 4.64% for the standard variable rate for homeowners paying principal and interest. The interest rate would increase to 5.19% for its customers on interest-only loans. ANZ has not announced any changes to deposit rates.
Westpac Banking Corporation (ASX: WBC)
Westpac would increase variable interest rates on home loans by 0.25% for new and existing customers from May 17, 2022. The bank has also decided to increase interest rates by 0.25% for certain accounts consumer deposit companies such as Westpac Life, Westpac 55+ and Retired.
National Australia Bank Ltd (ASX: NAB)
NAB would pass on an interest rate increase of 25 basis points in full to its customers. The bank also raised rates on some savings accounts. The amendments would come into effect on May 13, 2022.
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