Westpac and NAB raise variable home loan rates after RBA's 25-basis-point hike
Westpac and NAB announced a 0.25 percentage-point increase to variable home loan rates effective 13 November, following the Reserve Bank of Australia's decision to lift the cash rate to 4.85 %.
Australia's major lenders are beginning to pass on the Reserve Bank of Australia's latest 25-basis-point cash-rate increase. Westpac said its variable home loan rates will rise by 0.25 percentage points from 13 November, and the bank's Life Total Variable savings rate will also increase to 5.50 % per annum on the same date.
"We know another interest rate increase may be difficult for many households, particularly those who have already adjusted their budget this year," Westpac consumer chief executive Carolyn McCann said. "The majority of our customers are managing well and remain ahead on their repayments. For customers who are feeling the pressure, we encourage them to reach out to us early so we discuss the support options available."
National Australia Bank (NAB) made a similar announcement, stating its variable home loan rates will also rise by 0.25 percentage points from 13 November.
"We know another rate increase will be tough for some homeowners," NAB personal banking group executive Ana Marinkovic said. "For customers with a mortgage, these increases add up. We’re encouraging people to take a fresh look at their repayments and household budget. If things are getting tight, please don’t wait until you’re struggling to make a repayment. Talk to us early so we can understand your circumstances and look at how we can help."
Macquarie Bank was the first major lender to implement the full increase, moving its variable home loan and savings rates up by 0.25 percentage points from 19 November. The bank's head of personal banking, Ben Perham, noted the timing was intended to give customers more preparation time.
Commonwealth Bank and ANZ have not yet disclosed how they will adjust rates. The Reserve Bank of Australia raised the cash rate to 4.85 %, the highest level since December 2008, after a 6-3 board vote. Governor Michele Bullock said the board will monitor the impact of recent hikes and did not rule out further moves, while noting that the central forecast does not predict a recession but expects slower growth and tighter household finances.