Reserve Bank of Australia’s latest interest rate hike is set to impact mortgage holders across Australia, as the big four banks begin passing on the increase in full from today.
The RBA raised the official cash rate to 4.10 percent last week, marking a 0.25 percentage point increase and adding further pressure on borrowers.
Major banks including Commonwealth Bank, National Australia Bank, and ANZ Bank have already increased variable mortgage rates, while Westpac is set to implement the changes on March 31.
CBA and NAB have also raised fixed rates by up to 0.30 and 0.35 percentage points respectively, with their lowest one-year fixed rates now at 6.49 percent and 6.04 percent. ANZ’s lowest fixed rate stands at 5.99 percent.
Westpac is expected to offer the lowest advertised variable rate at 5.74 percent once all new rates take effect, while CBA is the only other major bank offering a variable rate below 6 percent at 5.84 percent.
The latest increase follows a previous rate hike in February, meaning borrowers are now facing back-to-back rises in repayments.
According to Canstar, a borrower with a $500,000 mortgage could pay at least $151 more per month due to the combined impact of the February and March increases.
Sally Tindall warned that borrowers should prepare for further pressure, with another potential rate hike expected as early as May.
Although banks begin charging higher rates immediately, customers paying minimum repayments will experience a delay before the increased costs are reflected in their accounts due to required notice periods.
Borrowers struggling to meet higher repayments are encouraged to contact their banks to explore options such as rate reviews, temporary reduced payments, interest-only arrangements, or extending loan terms.
Free financial guidance is also available through the National Debt Helpline.
Experts caution that more rate hikes may follow later in the year, urging mortgage holders to plan ahead and ensure their budgets can withstand ongoing cost-of-living pressures.
