Commonwealth, ANZ latest major banks to pass on rate hike

Commonwealth Bank and ANZ have become the latest of the big four to hike up home loan rates after the Reserve Bank’s bigger than expected increase in the cash rate.

Comm Bank has confirmed it will pass on the full 0.5 per cent increase taking its standard variable interest rate for owner-occupiers to 5.3 per cent.

The rate hike will come into effect from June 17.


The bank says it will support customers who may be concerned about repayments in the wake of the rate increase.

“We encourage customers to contact us to discuss the options available to them including ensuring offset accounts are set up and linked to their eligible home or investment loan,” Comm Bank’s Group Executive, Retail Banking, Angus Sullivan said.

ANZ has also increased its variable home loan rates by the full 0.5 per cent which will also come into effect on June 17.

“Many of our customers remain in good financial condition to manage rate rises with about 70 per cent ahead on repayments. A large number of them have built up buffers after not changing their repayments when rates reduced over several years,” ANZ Group Executive Australia Retail, Maile Carnegie said

Westpac was the first of the big banks to move overnight, increasing its home loan rates by the full 0.5 per cent as well.

All three of the banks will also increase the interest rates on some of their savings products including term deposits.

A number of smaller lenders have also moved on their home loan rates with Bank of Queensland, Macquarie, Virgin Money and ME Bank among those to pass on the rate hike in full.

NAB is yet to announce its rate decision but is also expected to increase home loan rates by the full 0.5 per cent.