Home loan holders copping interest rate carnage with June RBA hike

Reserve Bank of Australia Martin Place

In a call almost no leading economists predicted, the Reserve Bank of Australia doubled down its tightening bias today with another rate rise. The decision adds 25 basis points to official interest rates, pushing the cash rate to a decade-high of 4.10%. 

In his post-meeting statement, RBA governor Philip Lowe emphasised that despite a lack of meaningful data, he is determined to tighten the hold on inflation.

“Inflation in Australia has passed its peak, but at 7 per cent is still too high and it will be some time yet before it is back in the target range,” explained Lowe. 

“This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe.”

Indeed, while many economists at Australia’s major banks have estimated the cash rate would eclipse 4%, they didn’t expect the decision to come until July or August. The RBA has repeatedly demonstrated that if it can lean hawkish with monetary policy, it will. 

Today’s decision will also remind home loan borrowers that now is the time to cut back and economise – not spend. 

“The combination of higher interest rates and cost-of-living pressures is leading to a substantial slowing in household spending,” says Lowe.

“Housing prices are rising again and some households have substantial savings buffers, although others are experiencing a painful squeeze on their finances.”

RBA meeting minutes released later this month will likely go out of their way to justify today’s decision. Westpac made this criticism after last month’s surprise rate hike: everything seems obvious in hindsight, after all. Interest rate decisions that are won only by a slim majority must seem like inevitable conclusions. In reality, the RBA treads an incredibly narrow path. 

RELATED: How high will rates go?

The post-meeting statement reiterates this narrow path the RBA must navigate to achieve a ‘soft landing’, i.e. bring inflation down without plunging Australia into a recession. Little is certain, and the bank must make decisions reactive to the economic climate. 

But given the RBA had previously promised rates wouldn’t rise until 2024, it behoves us to remember that neither Philip Lowe nor the rest of the RBA Board can see the future. They fly just as blindly as everyone else, albeit with wealth and economics degrees in their back pockets .


Which banks have increased rates?

Collage of people walking a narrow path on a white background

We’ll track which lenders have changed interest rates as word comes in. To see how your lender compares, visit our home loan comparison page.

Home Loan Old rate New rate Effective date Rate change Naughty or Nice
6.64 6.89 9 Jun 2023 0.25
ANZ Index Variable Rate (Owner Occupier, Principal & Interest)
8.14 8.39 16 Jun 2023 0.25
5.89 6.14 9 Jun 2023 0.25
6.74 6.99 13 Jun 2023 0.25
5.95 6.2 22 Jun 2023 0.25
7.74 7.99 16 Jun 2023 0.25
8.5 8.75 16 Jun 2023 0.25
8.53 8.78 20 Jun 2023 0.25
8.2 8.45 20 Jun 2023 0.25
8.3 8.55 16 Jun 2023 0.25
6.54 6.79 15 Jun 2023 0.25
7.36 7.61 16 Jun 2023 0.25
8.24 8.49 22 Jun 2023 0.25
5.74 5.99 26 Jun 2023 0.25
8.46 8.71 20 Jun 2023 0.25
6.24 6.49 14 Jun 2023 0.25
loans.com.au Smart Home Loan 90 (Owner Occupier, Principal & Interest)
6.54 6.79 9 Jun 2023 0.25
6.71 6.96 23 Jun 2023 0.25
8.36 8.61 18 Jun 2023 0.25
8.27 8.52 16 Jun 2023 0.25
8.0 8.25 16 Jun 2023 0.25
RAMS Full Feature (Owner Occupier, Principal & Interest, LVR<95%)
8.36 8.61 20 Jun 2023 0.25
8.61 8.86 20 Jun 2023 0.25
8.73 8.98 16 Jun 2023 0.25
6.44 6.69 15 Jun 2023 0.25
8.33 8.58 20 Jun 2023 0.25

Read last month's Reserve Bank interest rates update.

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Last updated 15 February 2025 Important disclosures and comparison rate warning*
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Your loan-to-value ratio (LVR): 50%

Loan amount and LVR will affect interest rates.

  • Promoted

    Unloan Variable

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    5.99 % p.a.
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    5.90 % p.a.
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    6.28 % p.a.
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    $2,855
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  • Promoted

    Variable Home Loan 90

    • Principal and Interest
    • LVR <90%
    Interest rate
    6.04 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $3,011
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    Affordable home loan rate for buyers or refinancers. No monthly or ongoing fees. Option to add an offset for 0.10%. Access to savings with unlimited redraws available. Minimum 10% deposit required.

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    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR<70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.05 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Offset Home Loan

    • Fixed
    • Owner Occupier
    • Principal & Interest
    • LVR <70%
    Interest rate
    5.55 % p.a.
    Fixed 2 years
    Comparison rate
    6.28 % p.a.
    Initial monthly repayment
    $2,855
    Go to site

    Convenient offset account. No upfront or ongoing fees. Free extra repayments and redraw facility. Fast approval times. Min 30% deposit required. Borrow up to $10,000,000.

  • Fixed Home Loan

    • Owner Occupier
    • Principal & Interest
    • LVR <95%
    Interest rate
    5.69 % p.a.
    Fixed 2 years
    Comparison rate
    6.20 % p.a.
    Initial monthly repayment
    $2,899
    Go to site

    Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.

  • Fixed Rate Home Loan

    • Owner Occupier
    • Principal & Interest
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.16 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

  • Fixed Rate Home Loan

    • Owner Occupier
    • LVR<80%
    Interest rate
    5.74 % p.a.
    Fixed 2 years
    Comparison rate
    6.21 % p.a.
    Initial monthly repayment
    $2,915
    Go to site

    Get repayment security with fixed rates from one to five years. Free extra repayments of up to $25,000 during the fixed rate period. Fix a portion of your loan and leave the rest variable. Choose to repay weekly, fortnightly, or monthly.

  • Everyday Home Loan

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.94 % p.a.
    Variable
    Comparison rate
    5.99 % p.a.
    Initial monthly repayment
    $2,978
    Go to site

  • Unloan Variable

    • Owner Occupier
    • LVR <80%
    Interest rate
    5.99 % p.a.
    Variable
    Comparison rate
    5.90 % p.a.
    Initial monthly repayment
    $2,995
    Go to site

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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