Home Interest rate Which banks passed on November’s RBA rate hike to mortgage borrowers? What’s in it for savers?

Which banks passed on November’s RBA rate hike to mortgage borrowers? What’s in it for savers?

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Earlier this month, the Reserve Bank of Australia (RBA) raised the target cash rate by 0.25 percentage points to 2.85%.

As of yesterday (Wednesday, November 16), most of the major banks had passed on the increase to customers.

But while mortgage rate hikes were the same across the board, it’s a different story for savings accounts.

Here’s a breakdown of how the big banks reacted to the RBA’s November decision.

ANZ Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% per annum on Friday, November 11.

Savings rate: Plus Save account interest rates increased from 0.25% to 3.5% on Thursday, November 10.

Commonwealth Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on 11 November.

Savings rate: Increased prices for the following products:

  • NetBank Saver: The standard variable rate increased from 0.25% to 1.35%, with the five-month introductory rate increasing from 0.5% to 3.5%.
  • GoalSaver with bonus interest rate: Increase from 0.3% to 2.7%
  • Youthsaver with bonus rate: Increase from 0.3% to 2.9%.

Macquarie Bank

Mortgage rate: The benchmark variable rates for home loans increased by 0.25% on 16 November.

Savings rate: Increased prices for the following products:

  • Savings and Current Accounts: Prevailing interest rates rose 0.25% to 3.45% on November 16
  • Savings account introductory rate over four months: Increase from 0.25% to 4.25% on November 3
  • Term deposits: Interest rates increased by 0.25% to 3% per annum for a three month term, 3.6% for a six month term, 3.65% for a nine month term and 4. 1% for a period of 12 months. due November 3.

NAB

Mortgage rate: The standard variable interest rate for home loans increased by 0.25% on 11 November.

Savings rate: Increased prices for the following products:

  • iSaver introductory rate over four months: Increase from 0.5% to 3.5%
  • Saver Reward Bonus: Increase from 0.25% to 2.75%.

Suncorp Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on 11 November.

Savings rate: As of November 2, Suncorp’s 12-month term deposit rate was 4%.

Westpac Bank

Mortgage rate: Variable interest rates on home loans increased by 0.25% on November 15.

Savings rate: Prices have increased for the following products effective November 9:

  • Westpac Life: Total variable rate with bonus interest increased from 0.9% to 3.5%
  • Five-month Westpac eSaver introductory rate: Total variable rate increased from 0.95% to 3.5%
  • A term deposit : As of November 4, Westpac’s 12-23 month term deposit rate was 3.75% per annum.

How will this impact my mortgage repayments?

RateCiy estimates that the existing average variable homeownership rate is now 5.61%.

If you are facing mortgage stress you can contact the National Debt Helpline 1800 007 007 to speak to a financial adviser.

What is the advice for savers?

RateCity Director of Research Sally Tindall’s advice is to shop around.

“Don’t assume your bank passes on the RBA hike every month,” she said.

“Give your savings account a health check against the competition at least every two months.

“Savers should aim for a continuous rate well above the cash rate, at a minimum.

“As these fares become easier to find, customers will likely need to be proactive in obtaining them.”

Will rates go up again?

Probably, but we don’t know by how much.

In a statement after this month’s meeting, RBA Governor Phillip Lowe said the board planned to raise rates further.

“The size and timing of future interest rate increases will continue to be determined by incoming data and the Board’s assessment of the outlook for inflation and the labor market,” he said.

“The Board remains resolute in its determination to bring inflation back to target and will do what is necessary to achieve this.”

Will the RBA meet again this year?

Yes, the last meeting of the year will be on December 6th.

But the next meeting of the RBA board will not take place until February 7.

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