![\"Nick](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/1790754252_615_91052933f975894785a8b04eb8e86caa92fdd7280e88f671da66b25145aec541.png\")
<\/p>\n<\/p>\n
Updated September 30, 2026 \u2014 4:59pm,first published 3:05pm<\/p>\n
Save<\/p>\n
You have reached your maximum number of saved items.<\/p>\n
Remove items from your saved list<\/a> to add more.<\/p>\n AAA<\/p>\n The Commonwealth Bank, Westpac and ANZ have followed Macquarie and passed on the Reserve Bank\u2019s quarter-percentage-point rate rise to home owners, increasing borrowers\u2019 pain after three rate rises earlier this year.<\/p>\n While Westpac and Macquarie said they would also increase the interest paid to depositors by the same for at least some of their accounts, ANZ and CBA both confirmed that those rates were still under review.<\/p>\n The rise to 4.6 per cent<\/a> will bite for mortgage holders but federal data shows the nation\u2019s total offset account balances are still near record highs, and overdue home loan repayment rates are still very low.<\/p>\n Spending and labour market resilience have played into the Reserve Bank\u2019s thinking on rates<\/a> to date and, some analysts expect, could support the case for further rate rises that could exacerbate early signs of stress in parts of the economy.<\/p>\n CBA, the country\u2019s largest bank, announced on Wednesday afternoon it would increase its home loan rates by 25 basis points from October 9, followed shortly after by Westpac and ANZ. CBA retail banking boss Angus Sullivan said the bank had teams to support customers dealing with the increase.<\/p>\n \u201cFor some customers the immediate priority might be understanding how their repayments and budget may change and where adjustments can be made,\u201d Sullivan said. \u201cFor others it may be having a more detailed conversation with us about their finances.\u201d<\/p>\n Executives from the other banks made similar comments. CBA\u2019s media statement did not say whether it would increase interest rates on savings accounts by the same amount, while Westpac confirmed that holders of its Life account would get an interest boost.<\/p>\n John Storey, head of Australian bank research at UBS, said it was all but inevitable that the big banks would pass on the rate rise. \u201cI think it\u2019s a fait accompli, unfortunately,\u201d Storey said.<\/p>\n Macquarie Bank, the nation\u2019s fifth-largest home lender, said on Tuesday it will pass on the central bank\u2019s 25-basis-point increase in full, with the change taking effect from October 15. Savers with deposits in many of the bank\u2019s accounts will get the same increase.<\/p>\n \u201cFor any customers concerned about making their home loan repayments, we encourage them to get in touch, as financial assistance may be available,\u201d said Macquarie personal banking chief Ben Perham.<\/p>\n<\/p>\n Data released by the Australian Prudential Regulation Authority on September 17 shows that for the quarter ending in June this year, Australian offset balances stood at a total of $340 billion. That is up about $39 billion on the same period a year before but down from the staggering $349 billion recorded in the March quarter of 2026.<\/p>\n Those accounts help cushion the consequences of interest rises by reducing the portion of an outstanding loan that is carrying interest and giving households a financial pool to draw on for repayments if needed.<\/p>\n Despite recent rate rises, data from the banks isn\u2019t showing a large jump in people struggling with their mortgages. ANZ figures from August show, as of June 30, it had a 0.86 per cent exposure to home loans that were more than 90 days past due in its Australian portfolio, up three basis points compared with March.<\/p>\n \u201cWe continue to watch the external environment closely across our network,\u201d ANZ chief executive Nuno Matos said at the time. \u201cOur balance sheet and capital position remain strong and we are staying close to our customers should they need support.\u201d<\/p>\n Related Article Storey, the UBS analyst, said that coupled with falling house prices, the offset data showed \u201cthere\u2019s a bit of strain, with consumers that aren\u2019t as cashed-up as they used to be\u201d. But he cautioned that the consequences were uneven, depending on factors such as when people bought their homes.<\/p>\n Older Australians who owned their homes outright could benefit from rising interest rates on their savings accounts, Storey noted. Overall, he said, banks and mortgage holders were protected by the fact that many had large equity in their homes and were ahead on their payments, but flagged issues in the private credit industry<\/a> and the ongoing conflict in the Middle East as risks.<\/p>\n Cassandra Goldie, chief executive of the Australian Council of Social Services, said while the organisation was concerned about the consequences of rate rises for mortgage holders, renters deserved protection.<\/p>\n \u201cWe\u2019re very worried about renters because if we see a further increase there, people on low and modest incomes are going to be facing homelessness at this point,\u201d Goldie said on ABC radio.<\/p>\n The big four banks were contacted for comment.<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning<\/a>.<\/p>\n Save<\/p>\n You have reached your maximum number of saved items.<\/p>\n Remove items from your saved list<\/a> to add more.<\/p>\n![\"RBA](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/85825121e233d69ad348f53b15292ddea676ac05.jpeg\")
RBA governor Michele Bullock has not ruled out further pain for households.Louie Douvis<\/p>\n![\"x\"](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/f029e3ee8b8cf0091ce889e0ec2a18b2a2aa4b64.jpeg\")
<\/a><\/p>\n![\"Nick](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/09\/1790754255_733_91052933f975894785a8b04eb8e86caa92fdd7280e88f671da66b25145aec541.png\")
Nick Bonyhady<\/a> is the business editor of The Sydney Morning Herald and The Age. He is a former deputy federal editor, technology editor and industrial relations reporter.Connect via X<\/a> or email<\/a>.From our partners<\/p>\n","protected":false},"excerpt":{"rendered":"Updated September 30, 2026 \u2014 4:59pm,first published 3:05pm Save You have reached your maximum number of saved items.…\n","protected":false},"author":2,"featured_media":910750,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[64,63,99,164],"class_list":["post-910749","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-au","tag-australia","tag-business","tag-economy"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/910749","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=910749"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/910749\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/910750"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=910749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=910749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=910749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}