The Big Four banks have decided to break ranks with the Reserve Bank and raise their mortgage interest rates.
ANZ was the first to move on Friday, lifting its standard variable rate (SVR) by 0.6% to reach 7.36%, while Westpac announced the same evening that it would be raising its SVR by 0.1% to hit 7.46%.
CBA considered its options over the weekend before announcing its SVR would increase by 0.1% to reach 7.41%. NAB quickly followed, announcing a 0.9% rise, bringing its SVR to 7.31%.
The slight increases in the four banks' SVRs come despite the RBA deciding to keep the official cash rate on hold last week.
As it stands, Westpac has the highest SVR of the Big Four, followed by CBA, ANZ, and NAB.
According to the Your Mortgage basic repayment calculator, borrowers with a 25-year, $300,000, Principal and Interest loan will see their monthly SVR repayments increase by the following amounts:
- ANZ: $11.64
- Westpac: $19.44
- CBA: $19.41
- NAB: $17.40
Based on monthly repayments, this equates to the following increases in the overall amount of interest charged over the lifetime of the loan:
- ANZ: $3,492
- Westpac: $5,832
- CBA: $5,823
- NAB: $5.220
ANZ had indicated it would no longer be bound to the official cash rate at the end of last year, with ANZ Australia chief Philip Chronican saying the bank would make its own rate announcements on the second Friday of each month, while the none of the Big Four had ruled out rate rises that were out of step with the RBA.
The Bank of Queensland has vowed that it will not lift rates until at least next month, while NAB has indicated that it is intent on maintaining the lowest SVR among the majors.
Are you scratching your head at the banks' independent rate rises? Have your say in the mortgage and finance section of our property investment forum.
Rate hold a missed opportunity to boost property
Westpac slow to adjust repayments
Are buyers returning to the market?
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
Top Suburbs :
tweed heads south
Get help with your investment property
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.
We value your privacy and treat all your information seriously - you can check out