All four major banks and several mutuals confirmed they will pass on the Reserve Bank’s latest 0.25 percentage point cash rate hike in full to variable home loan customers.
Sally Tindall, Canstar’s data insights director, said the rate moves add to already intense household pressures.
“CBA, Westpac, and ANZ were quick to follow NAB in delivering the news no variable borrower wants to hear: their mortgage rate is on the rise,” Tindall said.
She noted that “between surging grocery bills, skyrocketing petrol prices, the end of electricity rebates, and rising health insurance premiums, household budgets could well be breaking at the seams on the back of this news.”
Canstar estimates that when banks pass on the March hike, a typical $600,000 mortgage with 25 years remaining will see about $91 added to monthly repayments. Combined with February’s increase, that is around $181 extra per month.
For brokers assessing borrowing capacity and stress‑testing scenarios, Tindall cautioned that options such as moving to interest‑only, or extending loan terms, should be used carefully.
“Switching to interest-only or extending your loan term can offer short-term relief, but they come at a long-term cost. What eases your budget now may add thousands in interest later,” she said.
Teachers Mutual Bank Limited, which includes Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank, and UniBank, will increase variable home loan rates by 0.25 percentage points from 26 March.
Chief customer officer Greg Johnson acknowledged the mixed impact, saying: “Today’s announcement will be welcomed by our members with savings, but will add pressure for borrowers already feeling the strain as the price of petrol and other household essentials continue to rise.”
Macquarie Bank will lift its variable home loan reference rates by 0.25 percentage points from 2 April, while again passing through the full increase to transaction and savings accounts.
“We know the RBA’s decision to lift rates again will come as unwelcome news to many mortgage holders, but we want our customers to know that we’re in your corner,” head of personal banking Ben Perham said.
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