CBA, NAB, ANZ customers dealt $76 interest rate blow today
Commonwealth Bank (CBA), NAB and ANZ are hiking their variable home loan interest rates for existing customers today, as the Reserve Bank’s (RBA) November rate hike kicks in.
Mortgage holders will now be paying an extra $76 a month, or $1,210 a year since the rate-hiking cycle began in May last year, based on an average borrower with a $500,000 loan at the start of the hikes and 25 years remaining.
Westpac will pass on the 0.25 per cent interest rate hike to variable-mortgage customers from Tuesday, November 21.
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While three of the Big Four banks will start charging customers higher rates from today, RateCity notes that banks typically take two to three months before taking the extra money out of customers’ bank accounts so customers are unlikely to see their repayments rise until the new year.
RateCity research director Sally Tindall urged mortgage holders to contact their bank and try to negotiate a rate cut, even if they had done so recently.
“Our analysis of the latest RBA data shows the average owner-occupier on a variable rate has managed to renegotiate or refinance their way out of 0.68 percentage points of hikes. When you hit the negotiating table, you want to aim to be on the higher side of this average,” Tindall said.
For those thinking of refinancing with another bank, Tindall said it was important to “compare apples with apples”.
“Before you sign the dotted line, ask your new lender whether the rate listed includes this latest RBA increase. You don’t want to accidentally miss a hike you thought had already been implemented,” she said.
“A decent rate after this RBA increase filters through across all lenders will still start with a ‘5’. If you live in the home you own, and have made decent progress on your loan, that’s what you should be aiming for.”
Savers get a boost
CBA, NAB and ANZ savings changes will also kick in today but these only apply to select accounts. Notably, ING has decided not to pass on the rate hike to its popular Savings Maximiser account.
CBA’s GoalSaver interest rate will increase by 0.25 per cent to 4.90 per cent, its NetBank Saver will increase by 0.35 per cent to 5.10 per cent for new customers, and its YouthSaver will increase by 0.25 per cent to 5.00 per cent.
NAB’s Reward Saver bonus interest rate will increase by 0.25 per cent to 5.00 per cent.
ANZ’s Plus Saver rate will increase by 0.25 per cent to 4.90 per cent for balances under $250,000. It has also increased its Online Saver rate by 0.35 per cent to 3.65 per cent for new customers.
“Big-bank customers should check their money is in the right account, because all four majors are still offering existing online saver customers laughable rates. CBA’s online saver is the most generous at just 2.35 per cent. Westpac’s is barely off the floor at 1.10 per cent,” Tindall said.
“Australians can and should do better than this.”
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