Australia’s major banks have begun announcing rate rises following the Reserve Bank of Australia’s decision to hike interest rates for the first time in four years.
RBA lifts interest rates by 0.25pc
The cash rate rose by 0.25 of a percentage point, meaning it now sits at 3.85 per cent.
The Commonwealth Bank announced it would increase home loan variable interest rates by 0.25 per cent per annum.
The change will go into effect on February 13.
CBA’s retail banking group executive, Angus Sullivan, said: “We know that interest rate changes can create additional pressure for our home loan customers, which is why we’re focused on providing support and helping them stay in control of their finances.”
Westpac also announced it would increase its home loan variable interest rates by 0.25 per cent per annum, with the change to go into effect on February 17.
Westpac’s consumer chief executive, Carolyn McCann, said the company understood an interest rate increase could “add pressure to household budgets”.
“For those who need support, we are ready to help,” she said.
“We have a range of tools and dedicated teams ready to assist anyone who is concerned about their repayments or financial situation.”
She added that the majority of Westpac customers were “ahead on repayments”.
“[This] puts them in a stronger position to navigate this change,” she said.
NAB announced it would also increase its standard variable home loan interest rate by 0.25 per cent per annum, effective February 13.
The bank said in a statement, “around 80 per cent of customers” had chosen not to reduce home loan repayments after rates were cut in February 2025.
Many, according to NAB’s executive for personal banking, Paul Carter, have adapted over time.
“Customers have shown that paying above the minimum can help build a repayment buffer, providing valuable breathing room when rates rise while helping to reduce interest over the life of the loan,” he said.
ANZ also announced it would increase interest rates for variable rate home loan customers.
“ANZ’s Australian home loans will increase by 0.25% p.a., effective 13 February 2026,” it said in a statement.
ANZ has announced it will increase interest rates for variable rate home loan customers. (ABC News: Yiying Li)
“A 0.25% p.a. increase to variable home loan rates will increase monthly repayments by approximately $79 on a variable home loan of $500,000 for an owner occupier loan with principal and interest repayments,” the statement said.
ANZ Group Executive Australia Retail, Pedro Rodeia, encouraged customers impacted by the rate increase to contact their team, so they could help them “navigate these changes with confidence”.