How have CommBank, ANZ, NAB, and Westpac responded to the August RBA rate hike?

With no end in sight to inflation, the Reserve Bank of Australia (RBA) has once more lifted the cash rate, delivering a massive 0.50% hike for the third month in a row. Official interest rates now sit at 1.85% – a full 1.75% higher than they were just in April. 

Borrowers with the Big Four (CommBank, Westpac, ANZ, and NAB) have already borne the brunt of the RBA’s aggressive tightening cycle, with the major banks passing along the hikes in full within days of the RBA’s decisions. CommBank was the first out of the gate for August with another 0.50% variable rate rise.

With both fixed and floating rates rising with the inflation, customers comparing home loans will have a tough decision ahead of them as they look for the most competitive rates – which may not always be with the Big Four.

Those hoping to refinance may also find their borrowing power has reduced significantly since they bought in, thanks to both rate rises and recent changes in lending regulations. Features like an offset account and free extra repayments with redraw will become hot commodities in a shifting market. 

Westpac estimates the cash rate will peak at 3.35% p.a. in February 2023, while ANZ predicts it will hit 3% by December 2022. Either way, the big banks have set their sights on another 1% - 1.5% worth of rate hikes within the next six months, which they will price into their products accordingly.

RELATED: How monetary policy impacts you–and what you can do about it

We will update this page with more information as the Big Four announce changes to their home loans offers.

For details on how other lenders and banks have responded to the RBA, check out our banking rate hike round up. You can also stay on top of the latest cash rate movements with our RBA rate tracker.

Commonwealth Bank 

• Increasing variable home loans 0.50% p.a. from 12 August

"We have been helping customers understand the changing rate environment and consider what it means for them, and we will continue to be there for them," says CommBank group executive, retail banking Angus Sullivan.

"We have a range of tools to help our customers manage their money, including Spend Tracker in the CommBank app. Customers can also manage their mortgage repayments online and align them to when and how often they are paid."

ANZ

• Increasing variable home loans 0.50% p.a. from 12 August

"We realise the persistent low-rate environment of recent years has been challenging for savings customers, so today we have tried to provide some relief for them with a range of deposit rate increases," says ANZ group executive Australia retail Maile Carnegie.

"For our home loan customers, we know the cost-of-living pressures will impact some of them more than others, so we have a number of support options available to help customers understand how these changes will affect them and what they can do about it."

Westpac

• Increasing variable home loans 0.50% p.a. from 18 August

"With every interest rate change, we consider multiple factors and stakeholders, including homeowners and savers. We also take into account the change to the cash rate and other increases to the cost of funding our loans," say Westpac chief executive, consumer and business banking Chris de Bruin.

"We understand the change in home loan interest rates will mean many customers will be reviewing their budgets. While more than two thirds of customers are ahead on repayments, we recognise after several successive interest rate rises, some may be feeling more financial pressure. We’re here to support these customers and encourage them to give us a call."

NAB

• Increasing variable home loans by 0.50% p.a. from 12 August

"While most of our customers are ahead on their repayments, if you’re concerned, the NAB Assist team is ready to help. Please get in touch – the earlier the better," says NAB group executive personal banking Rachel Slade.

"The first step is a conversation so we can help you get back on track."

What an RBA rate hike means for the market

After keeping rates pegged at 0.10% since November 2020, the RBA has abandoned its cautious stance and finally decided to increase the cash rate due to runaway inflation.

“The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected," said RBA governor Philip Lowe after the May 2022 rate hike.

“There is also evidence that wages growth is picking up. Given this, and the very low level of interest rates, it is appropriate to start the process of normalising monetary conditions.”

The decision has made ripple effects on home loans and other financial products, such as term deposits and savings accounts.

With no abatement to economic inflation, the RBA is likely poised to lift the cash rate multiple times over the coming months.

Now more than ever, comparing home loans and refinancing could be key for borrowers looking to avoid paying more in monthly repayments than they have to.

RELATED: How to handle RBA rate talk

Home loan rate change calculator

If you’re interested in comparing what’s on the market, head over to our home loan comparison hub to get started. You can also browse a selection of offers below.