The increases pass on in full the Reserve Bank of Australia’s (RBA) 3 November decision, which lifted the cash rate to 4.85%. Canstar figures show Westpac will keep the lowest advertised variable rate among the majors at 6.49%, followed by NAB from 6.54%, CBA at 6.59%, and ANZ at 6.75%.
The majors weren’t the first to move. Macquarie Bank and Teachers Mutual Bank Limited had already announced they would pass on the hike in full, from 19 and 12 November respectively. Bank of Sydney followed on 5 November, saying it will lift standard variable rates on existing home and business loans by 0.25% from 17 November.
Canstar expects the average owner-occupier variable rate to settle at 6.74%. It estimates more than 40 lenders will offer rates below 6.5%, and at least a couple will go under 6.2%.
Canstar data insights director Sally Tindall called the big banks’ move “Predictable and painful – the big four banks have now confirmed their mortgage rates are on the rise, once again, by the full 0.25.”
Smaller lenders are using the gap to court borrowers on the move. Bank of Sydney is keeping special rates for new customers, including first-home buyers and borrowers refinancing as they pay down their mortgage debt.
“In a rising rate environment, many Australians will be reassessing their household expenses, including whether they can secure a better deal on their home loan,” Bank of Sydney chief executive Kieran McKenna said.
The pressure is greatest on loans written when rates were at their lowest. Canstar modelled a $600,000, 30-year mortgage taken out five years ago. Its monthly repayments will have climbed from $2,399 to $4,056, a $1,657 increase. By contrast, ANZ puts the cost of this latest hike at about $79 a month on a $500,000 owner-occupier loan.
The Australian Prudential Regulation Authority (APRA) raised its serviceability buffer to 3 percentage points in November 2021. Canstar notes that RBA hikes since then total 4.75 percentage points.
Borrowers have some time before the higher repayments land. CBA gives at least 20 days’ notice, and the other majors give at least 30. Canstar says the lag is typically two to three months in practice.
The banks are using that window to urge struggling customers to get in touch.
NAB group executive personal banking Ana Marinkovic said in the bank’s update on home loan interest rates: “We know another rate increase will be tough for some homeowners.”
Westpac chief executive consumer Carolyn McCann struck a steadier note in Westpac’s 4 November rate change release: “The majority of our customers are managing well and remain ahead on their repayments.”
CBA said in its November 2026 interest rate decision that support can include flexible repayment arrangements.
Deposit increases are narrower than the mortgage hikes. ANZ’s Plus Growth Saver will reach 5.6% and Westpac Life 5.5%, but only for customers who meet the bonus conditions. ING is lifting savings rates alongside its home loans. CBA and NAB had not announced deposit changes as of 4 November.
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