The Big Four banks have decided to break ranks with the Reserve Bank and raise their mortgage interest rates.
ANZ was the first to move on Friday, lifting its standard variable rate (SVR) by 0.6% to reach 7.36%, while Westpac announced the same evening that it would be raising its SVR by 0.1% to hit 7.46%.
CBA considered its options over the weekend before announcing its SVR would increase by 0.1% to reach 7.41%. NAB quickly followed, announcing a 0.9% rise, bringing its SVR to 7.31%.
The slight increases in the four banks' SVRs come despite the RBA deciding to keep the official cash rate on hold last week.
As it stands, Westpac has the highest SVR of the Big Four, followed by CBA, ANZ, and NAB.
According to the Your Mortgage basic repayment calculator, borrowers with a 25-year, $300,000, Principal and Interest loan will see their monthly SVR repayments increase by the following amounts:
- ANZ: $11.64
- Westpac: $19.44
- CBA: $19.41
- NAB: $17.40
Based on monthly repayments, this equates to the following increases in the overall amount of interest charged over the lifetime of the loan:
- ANZ: $3,492
- Westpac: $5,832
- CBA: $5,823
- NAB: $5.220
ANZ had indicated it would no longer be bound to the official cash rate at the end of last year, with ANZ Australia chief Philip Chronican saying the bank would make its own rate announcements on the second Friday of each month, while the none of the Big Four had ruled out rate rises that were out of step with the RBA.
The Bank of Queensland has vowed that it will not lift rates until at least next month, while NAB has indicated that it is intent on maintaining the lowest SVR among the majors.
Are you scratching your head at the banks' independent rate rises? Have your say in the mortgage and finance section of our property investment forum.
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