The Reserve Bank of Australia (RBA) has confirmed it is lifting the cash rate for the sixth consecutive month, with another 25 basis point increase following October’s Board meeting.
The cash rate has now surged to a nine-year high following a rapid 250 basis points increase in just 153 days, as the RBA battles to curb rising inflation.
Philip Lowe, Governor of the Reserve Bank of Australia, said the RBA was committed to returning inflation to the 2-3% range over time.
“Today’s increase in interest rates will help achieve this goal and further increases are likely to be required over the period ahead,” Mr Lowe said. “The cash rate has been increased substantially in a short period of time. Reflecting this, the Board decided to increase the cash rate by 25 basis points this month as it assesses the outlook for inflation and economic growth in Australia.”
It comes as Compare the Market’s latest research revealed just 10% of Australian mortgage holders have shopped around for a better home loan rate in the last three months despite 50 per cent of homeowners being concerned about rising rates.
The data also revealed a staggering 92% of Australians are concerned about a possible recession in the next 12 months.
Compare the Market’s General Manager of Money Stephen Zeller said: “While a lot of Australian homeowners would have been expecting for a bigger whack this month, no one should still take this hit lying down.
Compare home loans with Compare the Market“Everyone should continue to put their rate under the microscope otherwise people could be paying extra interest unnecessarily.
“Complacency kills here. Assess your current financial situation now – the value of your property, and the composition of your debt. Look for the most cost-effective structure to ride out the wave over the next little while.
“There are some competitive offers available right now as institutions fight for a share of refinancers with various institutions advertising cash back, frequent flyer points as well as other bundles. But don’t get caught in the honey trap – check the rate is competitive before anything else.”
For Australians on a variable rate home loan, below is how a 25 basis point increase in the cash rate, if passed on by the lender in full, would affect monthly repayments:
| Mortgage size | 25 basis point increase to 4.75% p.a. | |
| Increase in monthly minimum repayments | Increase over the life of the loan | |
| $500,000 | +$75 | +$26,932 |
| $600,000 | +$90 | +$32,318 |
| $750,000 | +$112 | +$40,397 |
| $900,000 | +$135 | +$48,477 |
| $1,000,000 | +$150 | +$53,863 |
| Monthly repayments do not include any reduction in the mortgage balance over time. These calculations assume: An owner-occupied variable interest rate of 4.5% p.a; principal and interest (P&I) repayments; cash rate increases are passed on in full; the loan term is 30 years; and there are no monthly fees. | ||
Australians with a $600,000 mortgage will likely soon be paying $870 more each month than they were at the start of May, following a 250 basis point jump in just five months.
| Mortgage size | Increase in average monthly repayments since the start of May (250 basis points) |
| $500,000 | +$725 |
| $600,000 | +$870 |
| $750,000 | +$1,087 |
| $900,000 | +$1,305 |
| $1,000,000 | +$1,449 |
| Reserve Bank Lenders’ Interest Rates. Monthly repayments do not include any reduction in the mortgage balance over time. These calculations assume: An owner-occupied variable interest rate of 2.86% p.a; principal and interest (P&I) repayments; cash rate increases are passed on in full; the loan term is 30 years; and there are no monthly fees. | |
As we did in May, June, July, August and September, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders.
Following both of the previous two cash rate increases, these lenders were quick to pass on the full hike to their customers. Will they do the same again this time?
Watch this space to find out.
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 05 October 2022.
Compare home loans with Compare the MarketBig four bank rate rises
ANZ rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “ANZ announced it will increase variable home loan interest rates in Australia,” ANZ said in a statement. “Effective 14 October 2022, ANZ will increase variable interest rates for home, residential investment and line of credit home loans by 0.25% p.a.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Commonwealth Bank rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October.
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to raise the official cash rate by 0.25% per annum (p.a.), CBA will lift its home loan variable interest rates by 0.25% p.a., effective 14 October,” Commonwealth Bank said in a statement. “In addition, the bank will increase the interest rates across a number of its savings products.”
These include:
– NetBank Saver standard variable interest rate will increase by 0.25% p.a. to 1.10% p.a. The 5-month introductory variable rate will increase by 0.70% p.a. to 3.00% p.a., effective 14 October.
– GoalSaver with bonus interest rate will increase by 0.30% p.a. to 2.40% p.a., effective 14 October.
– Youthsaver with bonus interest rate will increase by 0.30% p.a. to 2.60% p.a., effective 14 October.
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
NAB rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: NAB Group Executive for Personal Banking, Rachel Slade, said NAB was focused on supporting customers. “If you are worried about the impact of increasing interest rates, you have our full support,” Ms Slade said said in a statement. “Our home loan specialists can help with a financial health check to make sure you’re on the best rate for your situation and our NAB Assist team is on standby for those who need additional help.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Westpac rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 18 October
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, Westpac today announced a 0.25% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” Westpac said in a statement. “These variable rate changes will come into effect on Tuesday 18 October 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
AMP rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October for new customers, 17 October for existing customers.
Other info: “Changes to the official cash rate is one of several factors that impacts our pricing decisions,” AMP said in a statement. “Other factors include the direct implication of the cash rate increase to the cost of borrowing, market conditions, as well as a desire to balance the interests of homeowners and savers.
“We are conscious of the impact of increasing rates on customers and household budgets and remain committed to offering competitive rates to our customers.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Bank of Melbourne rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 18 October
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, Bank of Melbourne today announced a 0.25% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” Bank of Melbourne said in a statement. “These variable rate changes will come into effect on Tuesday 18 October 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Bank SA rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 18 October
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, BankSA today announced a 0.25% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” Bank SA said in a statement. “These variable rate changes will come into effect on Tuesday 18 October 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Bankwest rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “The latest change to our home loan rates will take effect on 14 October 2022, when our Standard Variable Rate (SVR) for home loans will increase by 0.25% p.a. for new and existing customers,” Bankwest said in a statement. “We’re increasing the interest rates for select savings products, including an increase to our Variable Hero Bonus Rate (new rate: 2.75% p.a.) for balances up to $250k, and our Easy Saver Rate for balances up to $50k (new rate: 2.60% p.a.).”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Bendigo & Adelaide Bank rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “For Bendigo and Adelaide Bank home loan customers on a Variable Rate Loan the interest rate will increase by 0.25% p.a. as of 14 October,” . The Bank will also increase the rate on its Reward Saver deposit products by 0.25% p.a. as of 26 October.
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
BOQ rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “To support savings customers, BOQ will continue to monitor rates on its popular myBOQ savings accounts to ensure they remain competitive,” BOQ said in a statement.
“If you’re a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
HSBC rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 24 October
Other info: “HSBC will increase its variable home loan interest rates by 0.25% p.a. with effect from 24 October 2022,” HSBC said in a statement. “Contact us if you want more information on how this will impact your repayments or to discuss your home lending needs.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: TBD
ING rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 11 October
Other info: “ING Australia announces it will increase its highest ongoing variable savings interest rate by 0.45% per annum,” ING said in a statement. “This move means eligible* new and existing Savings Maximiser customers could earn a variable interest of rate of 4.05% per annum to help boost their savings.
“There will also be a 0.20% per annum rate increases across ING Australia’s Savings Accelerator offerings (for new and existing customers). For example, customers with more than $150,000 in their Saving Accelerator will earn an interest of 2.80% per annum, up from 2.60% per annum.
“In addition the bank will increase all variable home loan rates for new and existing customers by 0.25% per annum.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Macquarie rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “Macquarie Bank is continuing to support Australian savers by lifting interest rates across a range of deposit products by up to 0.45% p.a. following the RBA’s official cash rate decision,” Macquarie said in a statement. “Importantly, Macquarie’s savings and transaction accounts have no minimum balance or deposit requirements, no transaction conditions, and no need to lock money away for a set period to receive the interest rate. In line with the RBA’s cash rate decision, Macquarie will also increase variable home loan reference rates by 0.25% p.a., effective 14th October 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
ME rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 15 October
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.25%, ME will lift variable home interest rates by 0.25% per annum (p.a.) from 15 October 2022,” ME said in a statement.
“To support savings customers, ME will continue to monitor rates on its popular term deposit and savings accounts to ensure they remain competitive. If you’re a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
St. George rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 18 October
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, St.George today announced a 0.25% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” St. George said in a statement. “These variable rate changes will come into effect on Tuesday 18 October 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
Virgin Money rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 14 October
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.25%, BOQ will lift variable home interest rates by 0.25% per annum (p.a.) from 14 October 2022,” Virgin Money said in a statement. “To support savings customers, Virgin Money will continue to monitor rates on its popular savings accounts to ensure they remain competitive.
“If you’re a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
