The Reserve Bank of Australia (RBA) met for their August meeting and made the announcement to increase the cash rate by 0.5%. The increase is the fourth successive as the RBA attempts to control inflation.
Inflation in Australia is highest it has been since the 1990s. The RBA anticipates inflation will peak later this year and decline towards the 2-3% range over time.
The lenders are likely to pass on the full rise to their variable rates, with Macquarie being straight out of the blocks to announce they will be raising their variable rate by 0.5% from the 12th August.
How could today’s cash rate hike affect your mortgage?
We have included the latest updates from our lenders in the table below, we will update as we receive their notifications.
For a variable home loan of $450,000 with 25 years remaining the 0.5% increase will add an additional $116 per month to your repayments. Monthly repayments on a $450,000 home loan balance (25 years remaining) with a rate of 2.59% are $2,040 increasing rate to 3.09%, the payments will be $2,156.
You can try our our online comparison calculator to see how much the increase adds to your repayments:
|86 400 (now UBank)||Pending|
|AMP||0.5% increase effective 15th August|
|ANZ||0.5% increase effective 12th August|
|Australian Military Bank||Pending|
|Bank of China||Pending|
|Bank of Queensland||0.5% increase effective 9th August|
|Bankwest||0.5% increase effective 12th August|
|Commonwealth Bank||0.5% increase effective 12th August|
|ING||0.5% increase effective 9th August|
|Keystart Home Loans||Pending|
|La Trobe Financial||Pending|
|Macquarie Bank||0.5% increase effective 20th August|
|ME Bank||0.5% increase effective 6th August|
|MyState Bank||0.5% increase effective 15th August|
|NAB||0.5% increase effective 12th August|
|P & N Bank||Pending|
|Resimac||0.5% increase effective 5th August|
|St George||0.5% increase effective 18th August|
|Suncorp||0.5% increase effective 12th August|
|Teachers Mutual Bank||Pending|
|Virgin Money||0.5% increase effective 9th August|
|Westpac||0.5% increase effective 18th August|
Lender rate increase to variable loan rate
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