Homeowners can breathe a sigh of relief after the Reserve Bank of Australia (RBA) decided to hold the cash rate at 3.6% in April – marking the first pause in 12 months.
At today’s April board meeting, RBA Governor Philip Lowe confirmed there would be no cash rate increase this month.
“Growth in the Australian economy has slowed, with growth over the next couple of years expected to be below trend. There is further evidence that the combination of higher interest rates, cost-of-living pressures and a decline in housing prices is leading to a substantial slowing in household spending,” Lowe said.
“While some households have substantial savings buffers, others are experiencing a painful squeeze on their finances.”
The RBA said it decided to hold interest rates to assess the impact of previous hikes on the economy and inflation. This means future rate rises could still be on the horizon.
It comes as Compare the Market’s latest research revealed almost half of adult Australians think owning property is just a pipe dream (41%). In comparison, fewer than 13% think owning property is still attainable, while 46% already own property.
Compare the Market’s General Manager of Money, Stephen Zeller, said the Board’s merciful decision to hold the cash rate will give variable rate borrowers some breathing room.
“It only took us 335 days and 10 rate rises to get here, but it seems we may be close to the peak of inflation mountain and may potentially be on our way back to base camp,” Mr Zeller said.
“Many borrowers needed this rate reprieve because they’ve already been hit with even higher costs of groceries, fuel and energy.
“With the home loan interest rate grenade is set to blow for many borrowers this year, many Aussies will be looking to refinance.
“If you’re on a fixed rate due to expire, you should be looking for the most competitive rate available and planning to make the switch or negotiating a lower rate with your current lender at least a month beforehand.”
Many Australians with a $700,000 mortgage are likely already paying $1,566 more each month than at the start of May 2022, following a 350 basis point jump in just nine months.
| Mortgage size | Increase in average monthly repayments since the start of May 2022 (350 basis points) |
| $500,000 | +$1,044 |
| $600,000 | +$1,253 |
| $750,000 | +$1,566 |
| $900,000 | +$1,879 |
| $1,000,000 | +$2,088 |
Reserve Bank Lenders’ Interest Rates. Monthly repayments do not include any reduction in the mortgage balance over time. These calculations assume: An owner-occupied variable interest rate of 2.86% p.a in May 2022; principal and interest (P&I) repayments; cash rate increases are passed on in full; the loan term is 30 years; and there are no monthly fees. | |
As we did in May, June, July, August, September, October, November, December and February, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders. How are the banks moving? Watch this space to find out.
All banks and lenders may not be included in this list. We’ve included the lenders on our panel.
The information on this page is general only – check with your lender for further details on their interest changes and how you might be affected.
Compare home loans with Compare the MarketBig four banks rate rises
ANZ
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Commonwealth Bank
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
NAB
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Westpac
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Other major banks rate rises
AMP
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Bank of Melbourne
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
BankSA
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Bankwest
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Bendigo & Adelaide Bank
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
BOQ
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
ING
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Macquarie
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
ME
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
St. George
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
Virgin Money
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
- August 2022: 50 basis points
- September 2022: 50 basis points
- October 2022: 25 basis points
- November 2022: 25 basis points
- December 2022: 25 basis points
- February 2023: 25 basis points
- March 2023: 25 basis points
This page was last updated 04 April 2023.
