The Reserve Bank’s rate increase will start to affect mortgage holders as the top four banks pass the increase through to their clients.
Next the RBA’s lead on Tuesday, ANZ, Commonwealth Bank, Westpac, and NAB will increase variable rates by 50 basis points starting the following week.
Additionally, banks have disclosed increases in interest rates for specific savings accounts.
The action follows requests from Treasurer Jim Chalmers for banks to pass on rate increases for both house loans and deposits.
According to Commonwealth Bank’s head of retail banking, Angus Sullivan, the lender, which was the first to announce the rate increase, will provide owner-occupiers with a restricted four-year fixed rate at 4.99 percent.
‘This offer has been launched specifically to serve consumers searching for assurance in a changing rate environment,’ he added. “This special is a reduction of 1.60 per cent per annum from our current four-year fixed-package rate.”
In order to increase the rewards on savings for customers, Westpac matched the offer of a special four-year fixed rate of 4.99 percent and stated it will raise interest rates on two of its most popular accounts.
Chris de Bruin, chief executive of Westpac Consumer and Business Banking, admitted that some clients would experience financial stress.
He stated, “We are here to support these clients and encourage them to give us a call.”
‘New and existing customers could fix their loan for four years which may provide more certainty over their repayments, or split their loan between fixed and variable rates.’
ANZ announced Monday that it will review other established savings accounts and that the rate on its ANZ Plus Save account would increase.
Customers who have been saving money have found it difficult due to the recent low-rate environment, according to Maile Carnegie, head of the ANZ retail group.
As a result, she explained, “we have tried to provide some assistance for them today by increasing a variety of deposit rates.”
The rate hike will be passed on to clients by NAB, which made the announcement Thursday. Executive for the personal banking group Rachel Slade urged customers to get in touch with them if they were having trouble.
The sooner you contact us, the better, she said.
“A dialogue is the first step so we can assist you get back on track,”
Australian mortgage holders are switching banks in historic numbers to get a better deal, according to ABS statistics on lender indicators.