Which banks have passed on the November RBA rate rise to mortgage borrowers? What’s in it for savers?

 In Home News Section, Home Slider Section, Uncategorized

At the beginning of the month the Reserve Bank of Australia (RBA) increased the cash rate target by 0.25 of a percentage point, taking it up to 2.85 per cent.

As of yesterday (Wednesday, November 16), most of the major banks had passed the increase on to customers.

But while the mortgage rate rises were the same across the board, it’s a different story for savings accounts.

Here’s a breakdown of how the major banks responded to the RBA’s November decision.

ANZ Bank

Mortgage rate: Variable home loan interest rates increased by 0.25 per cent per annum on Friday, November 11.

Savings rates: Plus Save account interest rates increased by 0.25 per cent to 3.5 per cent on Thursday, November 10.

Commonwealth Bank

Mortgage rate: Variable home loan interest rates increased by 0.25 per cent on November 11.

Savings rates: Rates increased for the following products:

  • NetBank Saver: Standard variable rate increased by 0.25 per cent to 1.35 per cent, with the five-month introductory rate increasing by 0.5 per cent to 3.5 per cent
  • GoalSaver with bonus interest rate: Increased by 0.3 per cent to 2.7 per cent
  • Youthsaver with bonus rate: Increased by 0.3 per cent to 2.9 per cent.

Macquarie Bank

Mortgage rate: Variable home loan reference rates increased by 0.25 per cent on November 16.

Savings rates: Rates increased for the following products:

  • Savings and everyday transaction accounts: Ongoing interest rates increased by 0.25 per cent to 3.45 per cent on November 16
  • Savings account four-month introduction rate: Increased by 0.25 per cent to 4.25 per cent on November 3
  • Term deposits: Interest rates increased by 0.25 per cent, increasing to 3 per cent per annum for a three-month term, 3.6 per cent for a six-month term, 3.65 per cent for a nine-month term and 4.1 per cent for a 12-month term on November 3.

NAB

Mortgage rate: The standard variable home loan interest rate increased by 0.25 per cent on November 11.

Savings rates: Rates increased for the following products:

  • iSaver four-month introduction rate: Increased by 0.5 per cent to 3.5 per cent
  • Reward Saver bonus: Increased by 0.25 per cent to 2.75 per cent.

Suncorp Bank

Mortgage rate: Home loan variable interest rates increased by 0.25 per cent on November 11.

Savings rates: As of November 2, Suncorp’s 12-month Term Deposit rate was 4 per cent.

Westpac Bank

Mortgage rate: Variable home loan interest rates increased by 0.25 per cent on November 15.

Savings rates: Rates increased for the following products as of November 9:

  • Westpac Life: Total variable rate with bonus interest increased by 0.9 per cent to 3.5 per cent
  • Westpac eSaver five-month introduction rate: Total variable rate increased by 0.95 per cent to 3.5 per cent
  • Term deposit: As of November 4, Westpac’s 12 to 23-month Term Deposit rate was 3.75 per cent per annum.

How will this impact my mortgage repayments?

RateCiy estimates the average existing variable owner-occupier rate is now 5.61 per cent.

If you’re dealing with mortgage stress, you can contact the National Debt Helpline 1800 007 007 to speak to a financial counsellor.

What’s the advice for savers?

RateCity research director Sally Tindall’s advice is to shop around.

“Don’t just assume your bank is passing on the RBA hike each month,” she said.

“Give your savings account a health check against the competition at least every other month.

“Savers should be aiming for an ongoing rate that’s well over the cash rate, at a minimum.

“While these rates are becoming easier to find, customers are likely to have to be proactive to get them.”

Will rates go up again?

Probably, but it’s unclear by how much.

In a statement after this month’s meeting, RBA governor Phillip Lowe said the board expected to increase rates further.

“The size and timing of future interest rate increases will continue to be determined by the incoming data and the Board’s assessment of the outlook for inflation and the labour market,” he said.

“The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.”

Will the RBA meet again this year?

Yes, the last meeting of the year will be on December 6.

But the following RBA board meeting won’t be until February 7.

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(Original ABC Article)