Frustrated mortgage holders will officially pay more interest on their home loans starting on Friday, as the major banks pass on the rates pain.<\/p>\n
All four major banks will lift the cash rate by 25 basis points for variable mortgage holders following the Reserve Bank\u2019s latest hike announced last week. <\/p>\n
The Commonwealth Bank\u2019s new rate now stands at 6.34 per cent, NAB\u2019s between 6.29-7.04 per cent and ANZ 6.50 per cent.<\/p>\n
The move marks the end of big bank rates starting with a 5, with Westpac\u2019s lowest rate now standing at 6.24 per cent.<\/p>\n
According to Compare the Market, the average mortgage payers with a loan around $731,000 will spend roughly $5568 more over the course of a year now that rates are a full 1 per cent, higher than they were at the start of 2026.<\/p>\n
Compare the Market economics director David Koch called the latest interest rate hike \u201ca gut punch for households\u201d.<\/p>\n
\u201cWhere are people meant to find an extra $5500 a year? And that\u2019s after tax \u2026 On top of that, households are getting hit at the petrol pump and again at the supermarket,\u201d he said. <\/p>\n
\u201cRates are higher, loans are bigger, and we have a whole generation of mortgage payers who have never seen rates this high. <\/p>\n
\u201cWe can\u2019t keep asking the same group of people to keep tightening their belts when there are forces pulling in the opposite direction.\u201d<\/p>\n
Why big four banks are lifting rates<\/p>\n
The major four banks have lifted what they are charging mortgage holders following the September 29 interest rate hike announcement. <\/p>\n
In a widely expected move, the RBA\u2019s monetary policy board unanimously agreed on Tuesday to lift the rate by a further 25 basis points to 4.60 per cent.<\/p>\n
This was the fourth rate hike of the cycle, taking the cash rate from 3.60 to 4.60 per cent. <\/p>\n
RBA governor Michele Bullock said she understood the hike decision was \u201ctough\u201d for mortgage holders, but if inflation wasn\u2019t lowered, interest rates would need to go even higher.<\/p>\n
Inflation is sitting at 3.5 per cent, above the target range of 2-3 per cent.<\/p>\n
\u201cToday\u2019s increase in interest rates is needed to slow the economy and return inflation to target,\u201d Ms Bullock told reporters.<\/p>\n
\u201cNow, I know this decision is difficult for households with a mortgage and businesses with loans, but high inflation hurts all Australians, especially the most vulnerable.\u201d<\/p>\n
Canstar data insights director, Sally Tindall said the move of all banks would be \u201cbrutal\u201d for home loan customers.<\/p>\n
\u201cThis is going to be brutal for some borrowers who are lugging around super-sized debts attached to rates that could soon easily start with a 7,\u201d she said.<\/p>\n
\u201cOne thing to bear in mind as a borrower, is that it\u2019s not all going to happen at once.<\/p>\n
\u201cYes, your big bank will start charging you the higher rate from next Friday, but it will give you a lot more time to work out how you\u2019re going to afford the increase in repayments.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Frustrated mortgage holders will officially pay more interest on their home loans starting on Friday, as the 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