Australia’s largest bank has joined the pack and announced that it will pass on the June RBA cash rate hike to its variable home loan customers in full.
From June 17, Commonwealth Bank of Australia will raise its mortgage rates for new and existing customers by 0.5 percentage points.
RateCity.com.au crunched the numbers based on existing customers with a $500,000 debt and 25 years remaining:
|
|
Old rate |
New rate |
Increase in repayments, $500K |
|---|---|---|---|
|
Standard variable |
4.80% |
5.30% |
$146 |
|
Discounted variable |
4.10% |
4.60% |
$140 |
|
Lowest variable |
2.44% |
2.94% |
$127 |
Note: An LVR of 70% applies to CBA’s lowest variable rate. Rates effective June 17.
“CBA is hiking variable home loan rates by the full 0.5 percentage points, taking its lowest variable rate to 2.94%,” said Sally Tindall, RateCity.com.au research director. “Two months ago, the bank’s lowest rate was just 2.19%. The days of rates under 2% are now well and truly numbered. Once the low-cost lenders factor in their RBA hikes, we expect there will be no variable rates left under 2%.”
