RBA cash rate hike: Find out if your lender is raising interest rates now

ByRichard C. Sloan

May 3, 2022

We track every lender raising home loan interest rates in the wake of the RBA rate hike.

The Reserve Bank of Australia raised the official exchange rate for the first time in more than a decade. A 25 basis point rise in the cash rate means home loan rates for many borrowers will go up.

Several lenders have already announced that rates will increase for new and existing borrowers. Here is a list of lenders who are raising their rates. We’ll update this list as more lenders announce rate hikes.

Which lenders are raising home loan rates?

*Note that we have chosen the lowest variable homeownership rate for each lender above. Most of these loans are available to borrowers with 20% deposits. But some rates are for borrowers with 30% deposits.

How much will this rate hike cost me?

Even a small increase in your interest rate can cost you a lot more in repayments. And the larger your loan, the more you will end up paying. Here’s a quick example using a low interest rate and average mortgage size.

Repayment of loans before rate hike

  • Loan amount: $595,869
  • Loan term: 30 years
  • Interest rate before rate hike: 2.10%
  • Monthly repayments = $2,232

Repayment of loans after rate hike

  • Loan amount: $595,869
  • Loan term: 30 years
  • Interest rate after rate hike: 2.35%
  • Monthly repayments = $2,308

In this scenario, a 25 basis point increase in interest rates costs you $76 per month. That’s $912 more per year.

My lender has increased my rate: what should I do?

If your interest rate has just gone up, it’s a good idea to compare it with other loans on the market. You may find that you can get a better deal. This is true even if rates are rising everywhere.

But if you find your rate is still quite competitive, you may want to keep your current loan for a while. Rates may continue to rise over the next few months, so it’s worth checking occasionally to make sure you’re still on a low rate.

My lender didn’t raise my rate: am I safe?

Not all lenders raise their rates immediately. Some may announce rate changes later. Some may decide not to raise rates. And yes, some lenders may even raise rates without notifying customers.

It is therefore a very good idea to check your lender’s website over the next few days and weeks to see if they have raised rates. And check your home loan through your online banking site or app to see if your rate is higher now.

Time to upgrade to a better deal? Check out our home loan refinancing guide.