Big four banks hike variable mortgage rates as rates starting with five disappear following RBA’s cash rate increase
Mortgage rates beginning with a five will soon disappear as major banks pass on the Reserve Bank’s cash rate increase.
By Friday, mortgage holders will experience the impact of the recent rate hike, with the big four banks confirming they will pass on the full increase.
Commonwealth Bank will have a lowest variable rate of 6.59%, Westpac 6.49%, NAB 6.54%, and ANZ 6.75%, as per Canstar.
Canstar’s Sally Tindall noted that only four lenders currently have advertised rates below 6%, but none have announced responses to the recent RBA rate hike.
Rate rise
Tindall expects rates starting with a “5” will soon disappear once all lenders adjust their rates.
She indicated that it might be over a year before rates fall below this benchmark once more.
Once the Melbourne Cup Day rate hike is passed on, variable mortgages are likely to start at 6.20%.
Tindall advises those considering refinancing to ensure they are comparing current rates to avoid mistakes.
Following last Tuesday’s rate hike, the major banks are adjusting their rates accordingly.
RBA Governor Michele Bullock announced a 25 basis point increase to 4.85%.
Bullock acknowledged the significant impact on Australians, suggesting it might feel recessionary until inflation reduces, potentially by 2028.
