{"id":569655,"date":"2026-03-28T09:13:14","date_gmt":"2026-03-28T09:13:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/569655\/"},"modified":"2026-03-28T09:13:14","modified_gmt":"2026-03-28T09:13:14","slug":"australias-major-banks-hike-mortgage-rates-pushing-repayments-past-6-per-cent","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/569655\/","title":{"rendered":"Australia\u2019s major banks hike mortgage rates pushing repayments past 6 per cent"},"content":{"rendered":"

Australian homeowners are bracing for a significant financial hit as the nation\u2019s largest banks have moved swiftly to pass on the latest cash rate increase, sending mortgage repayments soaring for millions. <\/p>\n

Commonwealth Bank, NAB, and ANZ today implemented the full 0.25 percentage point hike to their variable home loan customers, with Westpac set to follow suit next Tuesday.<\/p>\n

This widespread increase means the average owner-occupier variable rate is now poised to breach the 6 per cent mark, settling at an eye-watering 6.01 per cent once all lenders adjust their pricing. <\/p>\n

MORE NEWS<\/p>\n

Where you can still buy a home for under $500k<\/a><\/p>\n

Aus mortgage debt crisis: How much you\u2019ll still owe at 55<\/a><\/p>\n

New modelling predicts shock property price downturn<\/a><\/p>\n

The days of \u20185\u2019 in front of a variable rate are rapidly disappearing for many, with NAB and ANZ\u2019s lowest variable offerings now firmly in the sixes. <\/p>\n

While Westpac will temporarily hold the line with the lowest advertised variable rate among the majors at 5.74 per cent, the overall trend is clear: borrowing money is becoming significantly more expensive.<\/p>\n

The squeeze isn\u2019t limited to variable loans<\/p>\n

Both Commonwealth Bank and NAB have also hiked their fixed rates, with increases of up to 0.30 and 0.35 percentage points respectively. <\/p>\n

This shift has pushed NAB\u2019s fixed rate offerings entirely out of the \u20185\u2019 range. <\/p>\n

MORE NEWS: Tax loophole turns caravans into $200-a-day goldmine<\/a><\/p>\n

\"\"\/<\/p>\n

Westpac currently presents the most competitive fixed rate among the big four at 5.79 per cent for a one-year term, but market analysts warn that even these rates are volatile and could climb further in the coming days.<\/p>\n

Canstar.com.au\u2019s analysis reveals a dramatic contraction in competitive fixed rate options. <\/p>\n

A mere month ago, over 20 lenders offered fixed rates below 5.50 per cent; today, that number has dwindled to just two, with The Mac providing the lowest at 5.49 per cent for a two-year term. <\/p>\n

The average lowest available two-year fixed rate now stands at a formidable 6 per cent, underscoring the rapid deterioration of the fixed rate market.<\/p>\n

Rates rise from today but mortgage repayments will stay put for few weeks<\/p>\n

While the rate increases are effective immediately for many, there\u2019s a crucial delay before the higher repayments actually leave borrowers\u2019 accounts. <\/p>\n

The big four banks typically provide 20 to 30 days\u2019 notice before new repayment amounts are due. <\/p>\n

This lag, however, could create a dangerous illusion of stability, according to Canstar.com.au\u2019s data insights director Sally Tindall.<\/p>\n

MORE NEWS: Lawn obsession costing Aussie homebuyers big money<\/a><\/p>\n

\"\"\/<\/p>\n

\u201cVariable borrowers across the country are now having to brace for the second cash rate hike in as many months, while staring down the barrel of a potential third hike as soon as May,\u201d she warns.<\/p>\n

\u201cMake no mistake, banks are starting to charge customers higher rates from today, but be aware there\u2019s a significant delay between today and when that extra money comes out of your bank account, for those paying the minimum.\u201d<\/p>\n

Ms Tindall cautions that some homeowners might mistakenly believe they have absorbed the impact of recent hikes, when in reality, they may not have even begun paying for the first one. <\/p>\n

She urges owner-occupiers to proactively scrutinise their mortgage rates, stating, \u201cIf your rate starts with a 6, you\u2019re still paying a loyalty tax to your bank.\u201d <\/p>\n

She advises targeting rates below 5.75 per cent.<\/p>\n

What if you can\u2019t meet the new repayment amount?<\/p>\n

For those anticipating difficulty meeting the new repayment amounts, Ms Tindall stresses the importance of immediate action. <\/p>\n

Borrowers should first request a rate review from their current bank. <\/p>\n

If a reduction is secured, it\u2019s vital to confirm the new minimum monthly repayment. <\/p>\n

Should this still prove unaffordable, contacting the bank before missing a repayment is paramount to explore available options. <\/p>\n

Banks are mandated to offer support, which could include temporary interest-only periods, reduced payments, or extending the loan term. <\/p>\n

\"\"\/<\/p>\n

However, these solutions can incur significant long-term costs, making independent financial advice, such as that offered free by the National Debt Helpline, an essential first step.<\/p>\n

The outlook remains challenging, with all four major bank economists forecasting yet another 0.25 percentage point hike in May. <\/p>\n

\u201cThere\u2019s almost certainly more pain ahead for borrowers,\u201d Ms Tindall concludes. <\/p>\n

\u201cIf you\u2019ve got a mortgage, work out what your repayments might look like if rates rose not just in May but again later in the year. <\/p>\n

\u201cYou want to make sure this figure fits in your budget alongside the other rising cost-of-living pressures.\u201d <\/p>\n

For those contemplating fixing their rates, the window for competitive offers is rapidly closing, demanding prompt and thorough research.<\/p>\n","protected":false},"excerpt":{"rendered":"Australian homeowners are bracing for a significant financial hit as the nation\u2019s largest banks have moved swiftly to…\n","protected":false},"author":2,"featured_media":569656,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[64,63,44],"class_list":["post-569655","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-au","tag-australia","tag-news"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/569655","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=569655"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/569655\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/569656"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=569655"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=569655"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=569655"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}