24 lenders have passed on the full rate hike of 25 basis points
Mozo – The big four banks are first lenders to pass on the 25 basis point rate increase to their variable rate home loans, following The Reserve Bank decision yesterday to raise the official cash rate to 0.35%.
As of this morning, a total of 24 lenders have passed on the rate hike and 71 providers have not yet announced whether they will or will not be passing on the rate increase of 0.25%.
Home Loans
Virgin Money, HSBC and Greater Bank followed yesterday increasing their rates by 25 basis points. Suncorp, Macquarie, ME Bank, ING , Bankwest and Bank of Queensland have also passed on the rate hike.
ANZ and NAB big four customers will feel the rate hike first, with their rate increases coming into effect on 13 May. This will be followed by Westpac on 17 May and then Commonwealth Bank on 20 May.
“There is no doubt that a rate increase will be immediately felt by households across the country. After months of higher grocery and petrol prices, this is another cost that will be further squeezing household budgets,” says Mozo spokesperson, Tom Godfrey.
The new big four average standard variable interest rate will be 4.76%, adding an additional $71 a month to $500,000 mortgage.
| Increase to big four standard variable rates | ||||||||
| Home loan principal | Previous CBA | New CBA | Previous ANZ | New ANZ | Previous NAB | New NAB | Previous Westpac | New Westpac |
| 4.55% | 4.80% | 4.39% | 4.39% | 4.52% | 4.77% | 4.58% | 4.83% | |
| $250,000 | $1,397 | $1,432 | $1,374 | $1,410 | $1,392 | $1,428 | $1,401 | $1,437 |
| $400,000 | $2,235 | $2,292 | $2,198 | $2,255 | $2,228 | $2,285 | $2,242 | $2,299 |
| $500,000 | $2,793 | $2,865 | $2,784 | $2,819 | $2,785 | $2,856 | $2,802 | $2,874 |
| $750,000 | $4,190 | $4,297 | $4,122 | $4,229 | $4,177 | $4,285 | $4,203 | $4,310 |
| $1,000,000 | $5,587 | $5,730 | $5,496 | $5,638 | $5,570 | $5,713 | $5,604 | $5,747 |
| $1,250,000 | $6,704 | $6,878 | $6,595 | $6,766 | $6,684 | $6,855 | $6,725 | $6,897 |
| $1,500,000 | $8,380 | $8,595 | $8,244 | $8,457 | $8,355 | $8,569 | $8,406 | $8,621 |
| $2,000,000 | $11,173 | $11,460 | $10,992 | $11,276 | $11,139 | $11,425 | $11,208 | $11,495 |
| Source: Mozo.com.au, to calculate a specific amount, head to Mozo’s rate change calculator | ||||||||
Deposits
While the big four banks were quick to move variable home loan interest rates, only three increased their bonus savings rates. ANZ (0.40%), NAB (0.50%) & Westpac (0.50%) bonus savings increased by 25 basis points.
“While an increase to these rates is welcome for savers, the highest big four savings rates is 85 basis points below the top bonus rate of 1.35%”
| Big 4 Bonus Savings Accounts | ||||
| Provider | Account Name | Old Bonus Rate | New Bonus Rate | Balance on $10,000 after 1 year |
| ANZ | Progress Saver | 0.15% | 0.40% | $10,040 |
| Commonwealth Bank | Goal Saver | 0.25% | – | $10,025 |
| NAB | Reward Saver | 0.25% | 0.50% | $10,050 |
| Westpac | Life | 0.25% | 0.50% | $10,050 |
| Source: Mozo.com.au 5 May 2022 | ||||
Macquarie Bank is the only provider to announce an increase to their introductory savings rate, increasing it to 1.50% next week from 1.35%, making it the leading rate in the Mozo database.
Suncorp has increased their 12 month term deposit to 1.40% which is 130 basis points behind the leading 12 month term deposit of 2.70% with Judo Bank.
“Hopefully these are the first of many increases to savings rates. Savers have been really hurting when it comes to growing their money, the average base savings rate is just 0.12%.”
To keep track of further rate changes, head to the RBA interest rate tracker.
