The NAB, CBA and ANZ have all passed on the full interest rate hike to variable rate mortgage customers following the Reserve Bank of Australia lifting the cash rate 50 basis points last week.
From July 15, NAB variable rates for owner occupiers will add at least $131 to monthly mortgage repayments on a $500,000, 25-year loan.
CBA customers will pay up to $149 more per month on its standard variable rate, while ANZ mortgage holders will just a fraction less – $148 per month more for its index rate.
RateCity Research Director Sally Tindall said NAB had followed its big bank competitors in lifting rates by the full 0.50 percentage points.
“Variable rate customers are now seeing their third month in a row of big rate rises,” she said.
“These relentless repayment increases could start to cause significant stress on some household budgets.”
Ms Tindall said now was the time for mortgage holders to analyse their rate and look around for better options.
“Following the last two hikes we saw CBA and ANZ turn around and cut rates for new customers,” she said.
“Borrowers should carefully check their own rate against what their bank is offering new business to make sure they aren’t being slapped with a loyalty tax.”
Ms Tindall also urged people to examine the rates on bonus saver accounts as three of the big four banks had increased them by the full 0.50 percentage points.
“The banks have so far put decent rate hikes on the table for some of their savers,” she said.
“Just remember, banks are being selective about which accounts they hike, so take time to review your savings rate regularly as the RBA hikes continue.
“People looking for a competitive term deposit rate should know there are higher rates out there than the specials put on the table by CBA, NAB and ANZ.
“Analysis from RateCity.com.au shows there are already 20 banks offering rates above 2.5 per cent for term deposits of 12-months and less, including AMP Bank, Macquarie Bank and Bank of Queensland.”