Each of the big four banks has announced they will lift variable interest rates for their home loan customers, following the Reserve Bank’s decision to raise the official cash rate.
On Wednesday, NAB announced changes across its home loan and savings products. The major bank will lift its standard variable home loan rate by 0.25% to 4.77%, and the reward saver bonus interest rate by 0.25% on 13 May.
NAB group executive personal banking Rachel Slade (pictured) said this decision reflected the impacts of the domestic and global environment, including changes to official cash rates.
“Supporting customers through the change is a priority for NAB,” Slade said.
“Interest rates have been very low for a long time – it has been 11 years since the official cash rate in Australia last increased and we know this will be a new experience for some customers.”
Read more: RBA lifts official cash rate
Slade said NAB would look after its customers if they found changes to interest rates challenging.
“Many of our customers will have questions about how any changes will impact them. We are here to help,” she said.
“Customers can access information about how to manage changes to their home loan including how far ahead they might be in repayments, if there is any redraw available, whether an offset account might help reduce interest payments, change their repayments, or book an appointment to talk to a banker.”
NAB’s new customer savings and home loan rates would be effective from 13 May 2022.
ANZ announced it would also increase its variable interest home loan rates by 0.25% following the Reserve Bank’s decision to lift the official cash rate on Tuesday.
ANZ Group executive Australia retail Maile Carnegie said in making this decision, ANZ considered various factors including the change in the official cash rate, along with the impact on its customers and business performance.
“While this change will impact customers in different ways, home loan customers are generally well placed to manage rising rates with around 70% of accounts ahead on repayments – many of them by two years or more,” Carnegie said.
“Household and business deposits are also at record highs.”
Read more: Australian home prices flatten in April
From 17 May, Westpac will increase its home loan variable interest rates by 0.25% for new and existing customers.
“We have made the decision to increase our standard variable rate for home loan and selected consumer deposit customers following yesterday’s increase to the official cash rate,” said Westpac chief executive consumer and business banking Chris de Bruin.
“We know many of our customers were able to build-up their savings during the pandemic and 70% of home loan customers are ahead on their repayments, helping put them in a better position to withstand an interest rate rise.”
On Tuesday evening, CBA announced it would be increasing home loan variable interest rates by 0.25% from 20 May.
CBA group executive for retail banking Angus Sullivan admitted the interest rate hike would be the first for many customers but said CBA was there to support those who might struggle with the change.
“This is an important time to support customers as some may not have experienced an interest rate increase since they took out their loans,” Sullivan said.
“We are here to help customers who have loans and are considering how repayments might change.”