Big four respond to RBA’s September rate hike

Australia’s four biggest lenders have finally responded to the Reserve Bank of Australia (RBA)’s September rate hike after several days of waiting game.

 Check out the rate changes from other banks and lenders here.

NAB

NAB was the first of the big four to break the silence, announcing a 50bps hike in its variable home loan rates.

NAB Group executive for personal banking Rachel Slade urged the bank’s clients to reach out to stay on track financially amid the rising rate environment.

“When customers speak to our NAB Assist team early, we see that 90% of our customers are back on their feet within 90 days.”

Some of the tailored solution NAB offers include payment breaks, reduction in payments, and referrals to financial and mental health counsellors.

ANZ

Following NAB was ANZ, which also passed on the full rate hike to its variable-rate borrowers.

ANZ group executive for Australia retail Maile Carnegie said the bank as experienced teams that can help clients navigate the impacts of rising cost of living and changing rate environment.

“While many of our customers remain in a strong position, we encourage any customer who may be facing difficulties to reach out to our experienced teams as soon as they can to discuss additional personalised support,” she said.

ANZ estimates that the 50bps hike in rates will translate to a $125 increase in monthly repayments for owner-occupier loans of $450,000 paying principal and interest.

Commonwealth Bank

CBA’s variable home loan rates will increase 50bps starting 16 September.

To help customers protect their home loans from future rate increase, CBA will be extending its four-year fixed rate special of 4.99% p.a. for owner-occupiers with a home loan package (5.77% p.a. comparison rate) and its three-year interest-only investment home loan fixed package of 5.49% p.a. (6.35% p.a. comparison rate).

Westpac

Westpac will be increasing its variable rates by 50bps from 20 September.

Westpac chief executive for consumer and business banking Chris de Bruin said the bank seek to balance the needs of both home loan and deposit clients when reviewing rates.

“We also consider several factors including the increase to the cash rate, competitive environment, and the performance of our business,” he said.

“Over the last five months we have increased the interest rates on savings and deposit accounts. We have also introduced competitive term deposit offers to help support savers in reaching their goals.”