Three of the major banks have made massive changes to their interest rates and loan deals. Here’s what you need to know.
Three of the major banks have made changes to their interest rates after the Reserve Bank of Australia increased the official cash rate by 0.50 per cent to 2.35 per cent.
The Commonwealth Bank of Australia said it would increase its home loan variable interest rates by 0.50 per cent from September 16.
Changes will apply to all variable products, including all work in progress applications.
“We know that there is a lot of change happening for our customers right now, and supporting them through this time is a priority for us,” retail banking services group executive Angus Sullivan said.
“We have a range of tools and other support measures to help our customers manage their home loan repayment, including our new home loan change repayment tool, which helps our customers to synchronise their mortgage repayments with the day they are paid.”
CBA will also increase the interest rates across some of its savings products.
GoalSaver with bonus interest rate will increase by 0.60 per cent to 2.10 per cent.
Youthsaver with bonus interest rate will also increase by 0.60 per cent to 2.30 per cent.
CBA’s 18-month term deposit special offer of three per cent will also be extended.
Some term deposit interest rates will increase by up to 0.75 per cent from Monday.
“One of the things we are doing to help our customers better manage any pressures to their household budget associated with the rising cost of living is lifting the rates across a number of our deposit products,” Mr Sullivan said.
CBA is also extending its four-year fixed rate special of 4.99 per cent for owner occupiers paying principal and interest with a home loan package.
The three-year interest only investment home loan fixed package rate of 5.49 per cent is also being extended.
ANZ says it will increase its variable interest rates by 0.50 per cent from September 16.
“We understand the cost of living and changing rate environment is impacting customers in different ways and our experienced teams are here to help our customers understand what these changes mean for them,” ANZ group executive Australia retail Maile Carnegie said.
“We have a number of tools available to support our customers understand these changes, including our new home loan repayment calculator and our free home loan check-in.
“While many of our customers remain in a strong position, we encourage any customer who may be facing difficulties to reach out to our experienced teams as soon as they can to discuss additional personalised support.”
The change will increase monthly repayments by $125 on a variable home loan of $450,000 for an owner occupier paying principal and interest.
NAB’s standard variable home loan interest rate will also increase by 0.50 per cent from September 16.
Group executive for personal banking Rachel Slade said anyone with questions or concerns should contact their bank.
“An early conversation with your bank is so important to staying on track financially,” Ms Slade said.
“When customers speak to our NAB Assist team early, we see that 90 per cent of our customers are back on their feet within 90 days.”