The RBA increased the cash rate again by 0.5% at it’s September meeting yesterday. RBA governor Philip Lowe said in his statement that the latest increase would help bring back inflation back to it’s 2-3% target range.
Lenders are anticipated to pass on the rate increase in the coming weeks. The increases to date have added an additional 2.25%. In real terms, the average WA home loan repayment has risen by an additional $610 (based on $471,489 average loan size).
More to come? With the governor going on to say “The Board expects to increase interest rates further over the months ahead, but it is not on a pre-set path.” Big bank economists are predicting another increase in October of between 0.25% and 0.5%, with ANZ and Westpac factoring in a further 1% in rises and CBA expecting a further 0.4%.
We understand you may be concerned about the impact of bigger loan repayments on your household budget, particularly at a time when grocery, power and fuel costs are rising.
When it comes to your home loan, it’s important to understand what you’re paying, how any changes to your lender’s rate will affect you, and whether a more competitive rate might be available. We’ve recently requested re-pricing on all variable rates and will have communicated any changes to you. If you have any questions or would like to discuss your options then please get in touch..
How could today’s cash rate hike affect your mortgage?
We have included the latest updates from our lenders in the table below, we will update as we receive their notifications.
For a variable home loan of $450,000 with 25 years remaining the 0.5% increase will add an additional $116 per month to your repayments. Monthly repayments on a $450,000 home loan balance (25 years remaining) with a rate of 3.69% are $2,299 increasing rate to 4.19%, the payments will be $2,423.
You can try our our online comparison calculator to see how much the increase adds to your repayments:
Lender changes
| 86 400 (now UBank) | Pending |
| AMP | 0.5% increase effective 19th September |
| ANZ | 0.5% increase effective 16th September |
| Australian Military Bank | 0.5% increase effective 27th September |
| Bank of China | Pending |
| Bank of Queensland | 0.5% increase effective 16th September |
| Bankwest | 0.5% increase effective 20th September |
| Citi | 0.5% increase effective 16th September |
| Commonwealth Bank | 0.5% increase effective 16th September |
| Connective Advance | Pending |
| Connective Affinity | Pending |
| Connective Essentials | Pending |
| Connective Select | Pending |
| Connective Solutions | Pending |
| Firstmac | 0.6% increase effective 9th September |
| Heritage Bank | 0.5% increase effective 20th September |
| ING | 0.5% increase effective 15th September |
| Keystart Home Loans | Pending |
| La Trobe Financial | Pending |
| Macquarie Bank | 0.5% increase effective 16th September |
| ME Bank | 0.5% increase effective 19th September |
| MyState Bank | 0.5% increase effective 19th September |
| NAB | 0.5% increase effective 16th September |
| P & N Bank | 0.5% to 0.75% increase effective 23rd September |
| RedZed | Pending |
| Resimac | Pending |
| St George | 0.5% increase effective 16th September |
| Suncorp | 0.5% increase effective 16th September |
| Teachers Mutual Bank | 0.5% increase effective 23rd September |
| Virgin Money | 0.5% increase effective 16th September |
| Westpac | 0.5% increase effective 20th September |
Need some help?
If you’d like some assistance then we are happy to review your current position and give you some options. To get in touch you can call the office on 08 9304 9682 or email admin@foxmortgages.com.au