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Mortgage rate rises: August update

by | Aug 4, 2022

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:

Calculator


Lender changes

86 400 (now UBank)Pending
AMP0.5% increase effective 15th August
ANZ0.5% increase effective 12th August
Australian Military Bank Pending
Bank of ChinaPending
Bank of Queensland 0.5% increase effective 9th August
Bankwest0.5% increase effective 12th August
CitiPending
Commonwealth Bank0.5% increase effective 12th August
Connective AdvancePending
Connective AffinityPending
Connective EssentialsPending
Connective SelectPending
Connective SolutionsPending
FirstmacPending
Heritage BankPending
ING0.5% increase effective 9th August
Keystart Home LoansPending
La Trobe FinancialPending
Macquarie Bank0.5% increase effective 20th August
ME Bank0.5% increase effective 6th August
MyState Bank0.5% increase effective 15th August
NAB0.5% increase effective 12th August
P & N BankPending
RedZedPending
Resimac0.5% increase effective 5th August
St George0.5% increase effective 18th August
Suncorp0.5% increase effective 12th August
Teachers Mutual BankPending
Virgin Money0.5% increase effective 9th August
Westpac0.5% increase effective 18th August

Lender rate increase to variable loan rate


Need some help?

If you’d like some assistance then we are happy to review your current position and give you some options. To get in touch you can call the office on 08 9304 9682 or email admin@foxmortgages.com.au

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For all your finance solutions, get in touch now with Fox Mortgages.

 

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