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RBA rate rise June 2022: Which banks are raising interest rates again?

7 min read
7 Jun 2022
Reserve Bank July 2022

The Reserve Bank has lifted the official cash rate again today in its June meeting, meaning home loan repayments will once again be on the rise.

Following May’s 25-basis point increase – the first since 2010 – the RBA has decided on a bigger increase in June, raising the rate by 50 basis points to 0.85%.

The cash rate is one of the main tools at the central banks’ disposal to keep inflation within its target range. But a 50-basis point increase is big by historical standards.

The last time the RBA increased the cash rate by more than the standard 25-basis points was in February 2000, when it upped the rate by 50-basis points.

In fact, an increase higher than 25 has only happened 4 times since 1994, but Compare the Market’s banking expert David Ruddiman said the 50 basis point increase was the right call.

“Some homeowners won’t have seen rate rises of this magnitude since they first took out their mortgage,” Mr Ruddiman said.

“Rampant inflationary pressures, recent wages growth and record low unemployment made an increase of 50-basis points to a cash rate of 0.85% logical given the current circumstances, but there will still need to be considerable increases in the months ahead.

“Of course, while this will start to contribute to getting inflation back under control, it will inevitably lead to another large increase in monthly mortgage repayments – more than we’ve seen in nearly a quarter of a century.”

“In the current economic environment, this is like trying to arm wrestle an octopus.”

Calculations by Compare the Market show a 50-basis point increase would add $203 to the monthly repayments on a loan of $750,000.

Based on the current average owner-occupied rate for owner-occupiers (2.79% p.a), here’s what a cash rate increase of 50 basis points could do to mortgages of different sizes:

Mortgage sizeIncrease in average monthly repayments
50-basis point increase to 3.29% p.a.
$500,000+$135
$650,000+$176
$750,000+$203
$800,000+$216
$1,000,000+$270

Source: Reserve Bank Lenders’ Interest Rates. Monthly repayments are always reflective of the average mortgage amount per state and do not include any reduction in the mortgage balance over time. These calculations assume: Average owner-occupied interest rate according to the Reserve Bank (2.79% p.a), cash rate increase is passed on in full, your loan term is 30 years and there are no monthly fees.

“Our message to Australian homeowners is simple: don’t wait, there has never been a more important time for you to compare your home loan options,” Mr Ruddiman said.

“The higher interest rates go, the greater your potential savings when refinancing to a more competitive home loan.”

Just as we did last month, Compare the Market will be tracking interest rate movements from some of Australia’s biggest banks and lenders, to help you see if your home loan rate will be going up.

All banks and lenders may not be included in this list. We’ve included the lenders on our panel.

The information on this page is general only – check with your lender for further details on their interest changes and how you might be affected.

This page was last updated 13 June 2022.

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Big four bank rate rises

ANZ rate rise

Rate hike: 50 basis points.

Customers affected: All ANZ variable rate customers.

Effective from: 17 June 2022.

Other info: “ANZ is reviewing its current savings rates, however, it will offer a new rate for its 11-month Advance Notice term deposit of 2.25% p.a, effective Monday 13 June 2022.”

Previous rate rises:

  • May 2022: 25 basis points

Commonwealth Bank rate rise

Rate hike: 50 basis points.

Customers affected: Variable rate customers.

Effective from: 17 June 2022.

Other info: CBA will also increase the bonus interest rate for select savings products by 0.50% p.a.

Previous rate rises:

  • May 2022: 25 basis points

NAB rate rise

Rate hike: 50 basis points.

Customers affected: All variable home loan customers.

Effective from: 17 June 2022.

Other info: Customers can access a special 12-month Term Deposit interest rate of 2.25% p.a.

Previous rate rises:

  • May 2022: 25 basis points

Westpac rate rise

Rate hike: 50 basis points.

Customers affected: Variable interest rates for new and existing customers.

Effective from: 21 June.

Other info: Westpac is also introducing a term deposit rate of 2.25% p.a. for 12 months to support customers with their savings from 9 June

Previous rate rises:

  • May 2022: 25 basis points

AMP rate rise

Rate hike: 50 basis points.

Customers affected: New and existing variable rate customers.

Effective from: 17 June 2022 for new customers, 20 June for existing customers.

Other info: Select savings account rates (20 June 2022) and deposit rates (14 June 2022) will increase by 55 and 50 basis points respectively.

Previous rate rises:

  • May 2022: 25 basis points

AFG Home Loan rate rise

Rate hike: 50 basis points.

Customers affected: New and existing variable customers.

Effective from: 21 June 2022.

Previous rate rises:

  • May 2022: 25 basis points

Bank of Melbourne rate rise

Rate hike: 50 basis points.

Customers affected: New and existing home loan variable rate customers.

Effective from: 21 June 2022.

Other info: Also introducing a term deposit rate of 2.25% p.a. for 12 months.

Previous rate rises:

  • May 2022: 25 basis points

Bank SA rate rise

Rate hike: 50 basis points.

Customers affected: New and existing home loan variable rate customers.

Effective from: 21 June 2022.

Other info: Also introducing a term deposit rate of 2.25% p.a. for 12 months.

Previous rate rises:

  • May 2022: 25 basis points

Bankwest rate rise

Rate hike: 50 basis points.

Customers affected: New and existing home loan variable rate customers.

Effective from: 17 June 2022.

Previous rate rises:

  • May 2022: 25 basis points

Bendigo and Adelaide Bank rate rise

Rate hike: 50 basis points.

Customers affected: All variable rate customers.

Effective from: 17 June 2022.

Other info: The Bank will also increase the interest rate on many of its deposit products including the Reward Saver account by 50 basis points.

Previous rate rises:

  • May 2022: 25 basis points

BOQ rate rise

Rate hike: 50 basis points.

Customers affected: All variable home loan customers.

Effective from: 14 June 2022.

Other info: BOQ will also be increasing a range of term deposit rates from 10 June.

Source: TBD

Previous rate rises:

  • May 2022: 25 basis points

HSBC rate rise

Rate hike: 50 basis points.

Customers affected: All variable rate customers.

Effective from: 27 June 2022.

Previous rate rises:

  • May 2022: 25 basis points

ING rate rise

Rate hike: 50 basis points.

Customers affected: All new and existing owner-occupier and investor variable home loan rates.

Effective from: 15 June 2022.

Other info: Various savings account and deposit interest rates are increasing – see ING for more details.

Source: TBD

Previous rate rises:

  • May 2022: 25 basis points

Macquarie rate rise

Rate hike: 50 basis points.

Customers affected: All variable rate customers.

Effective from: 17 June 2022.

Other info: Macquarie increased one and two-year term deposit rates to 2.75% p.a. and 3.30% p.a. in May respectively.

In an Australian First, it has also introduced a 1.50% p.a. interest rate on its transaction account as well as its savings accounts.

Previous rate rises:

  • May 2022: 25 basis points

ME rate rise

Rate hike: 50 basis points.

Customers affected: New and existing customers on variable rates.

Effective from: 18 June 2022.

Other info: ME will also increase interest rates on its term deposits from 9 June 2022.

Previous rate rises:

  • May 2022: 25 basis points

St. George rate rise

Rate hike: 50 basis points.

Customers affected: New and existing home loan variable rate customers.

Effective from: 21 June 2022.

Other info: Also introducing a term deposit rate of 2.25% p.a. for 12 months.

Previous rate rises:

  • May 2022: 25 basis points

Virgin Money rate rise

Rate hike: 50 basis points.

Customers affected: New and existing customers on variable rates.

Effective from: 14 June 2022.

Other info: Virgin Money has also increased interest rates for its Boost Saver account.

Previous rate rises:

  • May 2022: 25 basis points

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avatar of author: William Jolly

Written by William Jolly

William is a Senior Finance Writer at Compare the Market, and has previously worked as a finance journalist for several years. He specialises in writing about financial products like home loans in ways that the average Australian can understand and enjoy. When he's not writing about saving money, William enjoys playing football (soccer), watching a good movie and spending time with his dog.

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