Rate Rises - what are the major lenders doing?

08/10/2009

ANZ was the first of the majors to announce rate changes to interest rates for variable rate mortgages. Pressure from the Government warning banks to not raise rates by more than the 0.25 per cent RBA cash rate increase had initially caused resistance among the major banks in determining who would move first and become the price leader.

Effective from Monday 12th October, ANZ's Standard Variable Rate home loan will increase by 0.25 per cent, taking the rate from 5.81 per cent to 6.06 per cent. ANZ also announced changes to some Fixed Rates, bringing them closer in line with the other majors.

Commonwealth Bank, NAB and Westpac all announced changes yesterday afternoon. The new standard variable rate for Commonwealth Bank and NAB will be 5.99 per cent, which also represents an increase of 0.25 per cent. Westpac's standard variable loan will remain on par with ANZ at 6.06 per cent.

The rate increases will add approximately $45 in additional repayments per month on a $300,000 mortgage paid over 25 years.

How much has your mortgage rate fallen?

Your bank may take about a week before announcing their rate change. Check back over the coming days as we update the biggest lenders here.

Lender
Aussie (T.B.A)
ANZ (0.25%) - effective Monday 12th October 2009
Bankwest (T.B.A)
Commonwealth Bank (0.25%) - effective Tuesday 13th October 2009
CUA (T.B.A)
Heritage Building Society (T.B.A)
ING Direct (T.B.A)
NAB (0.25%) - effective Monday 12th October 2009
Newcastle Permanent (T.B.A)
St. George Bank (T.B.A)
Westpac (0.25%) - effective Monday 12th October 2009

Want to know what is happening to your home loan or other banking products? Keep your bank honest by regularly monitoring rates on Infochoice.com.au to find better a deal that will help you save money.

Source: Infochoice.com.au