Home loan holders copping interest rate carnage with June RBA hike

By Evlin DuBose · · 2 min read
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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
AMP Bank Variable Rate Loan (Owner Occupier, Principal & Interest, LVR <90%) (Basic Package)
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
Athena Power Up (Liberate, Owner Occupier, Principal & Interest, 70%-80% LVR)
5.89 6.14 9 Jun 2023 0.25
Aussie Select Basic Variable (LVR>90%, Owner Occupier, Principal & Interest)
6.74 6.99 13 Jun 2023 0.25
Bank Australia Basic Home Loan (LVR>90%, Owner Occupier)
5.95 6.2 22 Jun 2023 0.25
Bank of Queensland Clear Path Variable Rate Home Loan (Owner Occupier, Principal & Interest)
7.74 7.99 16 Jun 2023 0.25
Bankwest Bankwest Simple Home Loan (LVR 95-98%, Owner Occupier, Principal & Interest)
8.5 8.75 16 Jun 2023 0.25
Bendigo Bank Variable Rate Residential (Owner Occupier, Principal & Interest)
8.53 8.78 20 Jun 2023 0.25
Beyond Bank Standard Variable Home Loan (Owner Occupier, LVR<90%)
8.2 8.45 20 Jun 2023 0.25
Commonwealth Bank Standard Variable Rate (Owner Occupier, Principal & Interest)
8.3 8.55 16 Jun 2023 0.25
Great Southern Bank Offset Variable (Owner Occupier, Principal & Interest, LVR >90%)
6.54 6.79 15 Jun 2023 0.25
Greater Bank Great Rate Home Loan (Owner Occupier, Principal & Interest)
7.36 7.61 16 Jun 2023 0.25
Heritage Bank Standard Variable (Owner Occupier)
8.24 8.49 22 Jun 2023 0.25
HSBC Standard Variable Rate Home Loan (Owner Occupier, LVR 80-90%) (Home Loan Package)
5.74 5.99 26 Jun 2023 0.25
IMB Bank Standard Variable Home Loan (Owner Occupier, Principal & Interest)
8.46 8.71 20 Jun 2023 0.25
ING Mortgage Simplifier (LVR>90%, Owner Occupier, Principal & Interest)
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
Macquarie Offset Home Loan (Owner Occupier, LVR 90-95%, Principal & Interest) (Package)
6.71 6.96 23 Jun 2023 0.25
ME Flexible Home Loan (Owner Occupier, LVR 80-95%, Principal & Interest)
8.36 8.61 18 Jun 2023 0.25
NAB Tailored Home Loan (Owner Occupier, Principal & Interest, LVR <95%)
8.27 8.52 16 Jun 2023 0.25
Newcastle Permanent Real Options Home Loan (Owner Occupier, Principal & Interest)
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
St. George Standard Variable Home Loan (Owner Occupier, Principal & Interest, LVR 80-95%)
8.61 8.86 20 Jun 2023 0.25
Suncorp Standard Variable Loan (LVR<95%, Owner Occupier, Principal & Interest)
8.73 8.98 16 Jun 2023 0.25
ubank Flex Home Loan (Owner Occupier, Principal & Interest, LVR 80-85%)
6.44 6.69 15 Jun 2023 0.25
Westpac Rocket Repay Home Loan (Principal & Interest, 70-80% LVR)
8.33 8.58 20 Jun 2023 0.25

Read last month's Reserve Bank interest rates update.

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Last updated 24 November 2024 Important disclosures and comparison rate warning*

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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