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After pausing in April, the Reserve Bank of Australia (RBA) increased the cash rate in May by 25bps, bringing it to 3.85%.

This current hike marks the 11th increase since the uptrend cycle began in May 2022.

Find out below how the big four banks reacted to this latest rate hike.

NAB

NAB is the first of the big four to announce the changes. It will be raising its standard variable home loan interest rate by 25bps effective 12 May 2023.

In line with the increase in the variable home loan rate, NAB will also be increasing its savings rate, also taking effect starting 12 May 2023. Here are the changes:

  • NAB Reward Saver bonus interest rate will increase by 25bps., bringing the total bonus interest rate to 4.50% p.a.
  • NAB iSaver introductory and standard variable rates will both increase by 25bps to 4.50% p.a. and 1.85% p.a. respectively.

According to NAB, it has made more than 60 increases across its savings products for the past 12 months.

ANZ

ANZ is the second big bank to announce changes in its interest rates following the May rate hike. 

Effective 12 May 2023, ANZ will be raising its variable interest rates across its home loan products by 25bps. 

The bank will also be boosting the rate available to savings customers. Savers with ANZ Plus Save accounts that have balances of less than $250,000 will have a 25bps increase in interest rates to 4.5%, effective 11 May 2023.

Westpac 

Westpac is passing the rate hike to its savers and borrowers. 

For home loan customers, their variable interest rates will increase 25bps effective 16 May 2023.

Meanwhile, Westpac's savings products will have the following changes:

  • Westpac Life total variable rate with bonus interest will increase by 25bps to 4.50% p.a., effective 12 May.
  • Westpac eSaver total variable rate will increase by 25bps to 4.50% p.a. for new customers for the first five months, effective 12 May.
  • Under Westpac’s Spend&Save offer for 18-29 year olds, eligible customers can earn a total variable rate of 5.00% p.a., an increase of 30bps, effective 12 May.

CommBank

CommBank will be raising its variable interest rates by 25bps starting 12 May 2023. 

The bank also introduced changes to its savings rates:

  • NetBank Saver 5-month introductory variable interest rate will increase by 25bps to 4.50% p.a., comprising a standard variable rate of 1.95% p.a. and fixed bonus margin of 2.55% p.a.
  • Youthsaver with bonus interest rate will increase by 25bps to 4.50% p.a., comprising a standard variable rate of 2.10% p.a. and bonus interest rate of 2.40% p.a.
  • GoalSaver with bonus interest rate will increase by 25bps to 4.40% p.a., comprising a standard variable rate of 0.40% p.a. and bonus interest rate of 4.00% p.a.

Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Rates
Features
Fees
Other
Lender
Variable
More details
4.5 STAR CUSTOMER RATINGSINCLUDES NOV RBA RATE INCREASE
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
4.5 STAR CUSTOMER RATINGSINCLUDES NOV RBA RATE INCREASE

Variable Home Loan (LVR < 90%)

  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset 
More details
Variable
More details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)

Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMEYM. (T&Cs apply)
More details
Variable
More details

Variable Rate Home Loan – Refinance Only

    More details
    • Low rates for purchase and refinancing
    • Simple online application process
    • No fees, unlimited redraws, 0.10% offset 

    More details
    Important Information and Comparison Rate Warning

    Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 29, 2023.

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    Photo by April Benjamin.

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