First movers begin passing on RBA rate rise

Following Tuesday’s (1 November) Reserve Bank of Australia (RBA) announcement it had lifted the cash rate to 2.85 per cent per annum (p.a.), the Commonwealth Bank Australia (CBA), Westpac, Australia and New Zealand Banking Group (ANZ) and Macquarie Bank have adjusted their home loan rates accordingly, as had the National Australia Bank (NAB) even earlier.

The CBA has confirmed it will increase its home loan variable interest rates by 0.25 per cent p.a., effective 11 November.

Group executive, Retail Banking, Angus Sullivan said: “We are committed to helping our customers navigate the current environment, which is why we are once again increasing the interest rates across a variety of our savings products.”

To further support savers, CBA will increase a number of term deposit interest rates, including its 12-month term deposit by 0.40 per cent to 3.75 per cent p.a., it outlined.

The bank will also increase its 18-month term deposit special to 4.00 per cent p.a. and these term-deposit rates will be effective from 7 November, CBA explained.

Mr Sullivan said the bank was looking at other ways it can help support its customers mitigate cost of living pressures.

“We’ve recently launched a new Cost of Living Support Hub to provide our customers with easy access to a one-stop-shop of tools, tips and guidance to help them manage cost of living pressures,” he said.

“We understand the rapidly changing rate environment may raise questions for some of our customers and we are here to help them,” Mr Sullivan said.

Westpac ups home loan rates, too

Likewise after the RBA’s updated rate for November, Westpac has announced a range of interest rate changes for deposit and home loan customers.

For its home loan customers, its variable interest rates will increase by 0.25 per cent p.a. for new and existing customers, effective 15 November.

As Westpac Group chief executive, Consumer and Business Banking, Chris de Bruin, explained: “Savers are continuing to benefit from a number of successive interest rate rises, helping them meet their financial goals.”

“Today we’ve announced we are increasing rates on some of our most popular products, including Westpac Life and eSaver.

“We know that with the cost of living increasing, some customers are looking at their household budgets.

“To help them manage their money more easily we’ve recently rolled out new features in the Westpac app to provide customers with insights into their spending and the ability to track and categorise expenses.

“With interest rates continuing to rise, we understand some people will be feeling more financial pressure.

“While we have not seen an increase in calls for assistance, and the majority of our customers continue to be ahead on repayments, we are ready to support customers who may need extra help,” Mr de Bruin said.

ANZ changes home loan rates

ANZ has also announced it will increase interest rates for its variable home loan and savings customers following the RBA’s decision.

The big-four bank will increase variable interest rates across its Australian home loans by 0.25 per cent p.a., effective Friday 11 November.

ANZ Group executive Australia Retail, Maile Carnegie said: “We understand the cost of living and rate changes have impacted our customers over a period of some months now.”

“We have a number of ways we can help our customers to understand these changes, including practical tools like our home loan repayment calculator and free home loan check-in.

“If customers are facing difficulties, we encourage them to reach out to our experienced teams as early as they can to discuss tailored options to support them,” Ms Carnegie said.

The 0.25 per cent p.a. change to variable home loan interest rates will increase monthly repayments by $65 on a variable home loan of $450,000 for an owner occupier paying principal and interest, the bank confirmed.

Macquarie on the march, as well

In line with the RBA’s cash rate decision, Macquarie has also increased its variable home loan reference rates by 0.25 per cent p.a., effective 16 November.

The bank has also lifted its savings rates by 0.25 per cent p.a. as it was "continuing to support Australian savers by lifting interest rates across a range of deposit products."

Importantly, highlighted Macquarie, its savings and transaction accounts have no minimum balance or deposit requirements, no transaction conditions, and no need to lock money away for a set period to receive the interest rate.

NAB quick off the new rate mark

Soon after the official cash rate was increased on Tuesday, NAB issued confirmation it was increasing its standard variable home loan rate by 0.25 per cent p.a, effective from 11 November, 2022.

In terms of its savings portfolio, NAB’s said its savings and term deposit rates are continually under review, but with not definite rate adjustments at the time.

NAB Group executive for Personal Banking, Rachel Slade, said: “For those who are finding the increasing interest rates a challenge, banks have a critical role to provide support.”

“At NAB, we have dedicated financial counsellors who listen to each customer’s individual situation and are able to offer tailored solutions - whether that be a reduced payment arrangement, payment break, or restructuring their loan.

“Regardless of who you bank with, I encourage people to speak to their bank early if they are concerned.

“The results speak for themselves – when a customer gets in touch with NAB Assist at the early stages of their concerns about their finances, we’re able to get 90 per cent back on their feet within 90 days,” Ms Slade revealed.

[Related: 2.85% November cash rate announced]