Home loan holders copping interest rate carnage with June RBA hike
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?
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.
Home loan comparisons on Mozo
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- Owner Occupier
- Principal and Interest
- Interest rate
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5.54
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Fixed 2 years
- Comparison rate
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5.93
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- Initial monthly repayment
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$2,852
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5.54
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5.93
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$495
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5.90
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$2,995
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Fixed Home Loan
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5.54
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5.93
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- Initial monthly repayment
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$2,852
Competitive fixed rate on up to a 30 year loan term. No application fees to pay. Additional repayments up to $20,000 per year without penalty. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
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5.54
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5.93
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Fixed Rate Home Loan
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5.59
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6.27
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- Initial monthly repayment
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$2,867
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-
5.59
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- Comparison rate
-
6.27
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- Upfront fees
-
$0
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-
$390.00 yearly
- Discharge fee
-
$300.00
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yes - free up to $10,000 p.a.
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-
no
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no
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2-Year Discounted - Simple Home Loan Variable
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5.54
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5.90
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$2,988
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5.90
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- Upfront fees
-
$0
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$0.00
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-
$175.00
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-
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Variable Home Loan
- Owner Occupier
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- Interest rate
-
5.98
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p.a.
Variable
- Comparison rate
-
6.02
%
p.a.
- Initial monthly repayment
-
$2,991
Competitive variable rate on up to a 30 year loan term. No application fees to pay. Unlimited additional repayments. Free online redraw. Optional 100% offset feature ($10/month) 10% minimum deposit. Fees & charges apply, Australian Credit Licence 237879 is held by Bendigo and Adelaide Bank Limited, the credit provider.
- Interest rate
-
5.98
%
p.a.
Variable
- Comparison rate
-
6.02
%
p.a.
- Upfront fees
-
$495
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
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- Redraw facility
-
yes - free
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-
yes- optional with $10/month
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- 90.00%
- Minimum borrowing amount
- $50,000
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Unloan Variable
- Owner Occupier
- LVR <80%
- Interest rate
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5.99
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Variable
- Comparison rate
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5.90
%
p.a.
- Initial monthly repayment
-
$2,995
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.
- Interest rate
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5.99
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- Comparison rate
-
5.90
%
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- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$0.00
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-
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-
no
- Maximum loan to value ratio
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- $10,000
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Discounted Home Value Loan
- Owner Occupier
- Principal & Interest
- LVR <60%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
-
5.99
%
p.a.
- Initial monthly repayment
-
$2,995
Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Receive $3,288 cashback when you refinance an existing home loan. Minimum loan amount of $250,000, settle within 120 days from applying.
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
-
5.99
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$300.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $50,000
- Maximum borrowing amount
- $15,000,000
- Type of mortgage
- Variable
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- Owner Occupier
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- -
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Simple Home Loan Variable
- Owner-Occupied
- Principal and Interest
- LVR<60%
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
-
5.99
%
p.a.
- Initial monthly repayment
-
$2,995
Enjoy a low variable rate with no application, ongoing or monthly fees to pay. Access your money via internet banking at any time with free redraws. Make additional repayments at any time. Available for owner occupied, investment and interest only repayments.
- Interest rate
-
5.99
%
p.a.
Variable
- Comparison rate
-
5.99
%
p.a.
- Upfront fees
-
$0
- Ongoing fees
-
$0.00
- Discharge fee
-
$175.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 60.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
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- Variable
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- Owner Occupier
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Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Initial monthly repayment
-
$2,995
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- Interest rate
-
5.99
%
p.a.
Fixed 3 years
- Comparison rate
-
6.89
%
p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge fee
-
$160.00
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $20,000
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- $3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
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-
Mortgage Simplifier
- LVR<80%
- Owner Occupier
- Principal & Interest
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.17
%
p.a.
- Initial monthly repayment
-
$3,043
Get a competitive variable rate with ING’s Mortgage Simplifier. Free extra repayments, no monthly or annual fees. Freedom to make free extra repayments or redraws.
- Interest rate
-
6.14
%
p.a.
Variable
- Comparison rate
-
6.17
%
p.a.
- Upfront fees
-
$350
- Ongoing fees
-
$0.00
- Discharge fee
-
$250.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
no
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $150,000
- Maximum borrowing amount
- $2,000,000
- Type of mortgage
- Variable
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Fortnightly, Monthly
- Special offers
- -
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-
Elevate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
6.18
%
p.a.
Variable
- Comparison rate
-
6.18
%
p.a.
- Initial monthly repayment
-
$3,056
Get competitive rates on loan terms of 5 to 30 years with the Aussie Elevate Home Loan. Structure your loan with up to five splits. Make additional repayments (T&Cs apply). Offset accounts available. Unlimited redraw using your online banking account. Choose from weekly, fortnightly or monthly payments For loan amounts from $10,000 to $5 million.
- Interest rate
-
6.18
%
p.a.
Variable
- Comparison rate
-
6.18
%
p.a.
- Upfront fees
-
$498
- Ongoing fees
-
$0.00
- Discharge fee
-
$325.00
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Offset account
-
Optional extra - $10 per month
- Maximum loan to value ratio
- 80.00%
- Minimum borrowing amount
- $10,000
- Maximum borrowing amount
- $5,000,000
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Your selected reserve bank interest rates
* 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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