CBA and ANZ hike variable home loan rates
Commonwealth Bank and ANZ have hiked rates for their variable customers, higher than Westpac's rise last week.
CBA have increased their rates by 15 basis points percent, while ANZ have raised theirs by 0.16.
ANZ were first to crack, raising their rates earlier today. Just 20 minutes later, Commonwealth Bank, the nation's biggest lender, followed suit.
The move comes after Westpac were the first of the big four to rate out of cycle.
Westpac raised their basis points by 14 basis points.
NAB continues to be the only big four bank to hold out.
Mozo director Kirsty Lamont said it's only a matter of time before NAB joins the fray.
“The latest interest rate hike from ANZ and the Commonwealth Banks comes as no surprise after Westpac opened the floodgates earlier," Lamont said.
"The big banks have been noticeably more strategic about the timing of their hikes this time around against the backdrop of the Banking Royal Commission.
With spring property season now in full swing, Lamont says mortgage interest rate hikes by some of the nation’s biggest lenders are likely to have a flow-on effect on the property market.
“These rate hikes couldn’t come at a worse time for property prices. Sizeable price drops have already been recorded across some of Australia’s capital cities and as the cost of borrowing rises, prices are likely to fall even further.”
Now coming into the 25th month of no movement in the cash rate by the Reserve Bank, the latest cycle of rate hikes is likely to keep official rates rises at bay for at least another two years.
RateCity.com calculated the Commonwealth Bank and ANZ new costs based on the banks’ standard variable rates for an owner occupier paying principal and interest.
CBA
ANZ
Source: RateCity.com.au.
RateCity research director Sally Tindall said today’s hikes show that when one big banks pulls the trigger, their counterparts aren’t far behind.
“CBA and ANZ’s decision to hike rates hot on the heels of Westpac was a predicable step in what is becoming a well-worn routine," Tindall said.
“In fact, hiking on the same day means they can shoulder the backlash together.
“What this rate hike means is that the vast majority of variable rate home owners will now be shelling out more on their mortgage each month.
“NAB would do well to break free of tradition and find a different way to wear the additional expense,” she said.
“While Australia’s big banks might move like a flock of sheep it doesn’t mean their customers have to.
“If you live in your own home and own at least 20 percent of it, start shopping around – you’ll be surprised at what rates are on offer.
“Plenty of lenders are ready and waiting to take on your business with rates as low as 3.44 percent,” she said.