The Reserve Bank of Australia has lifted the cash rate for the fourth consecutive month, following a 50 basis point increase to 1.85%.
The cash rate has now increased by 175 basis points since the start of May, as households continue to struggle with the rising cost of living.
The 50 basis point increase was insufficient, according to Compare the Market’s banking expert David Ruddiman, with inflation hitting a 20-year high just last week.
“The Treasurer warned Australians just last week that they will need to swallow ‘tough medicine’ but this really is a bitter pill to take,” Mr Ruddiman said. “This less than expected rate rise off the back of inflation figures that weren’t as bad as expected, but which were still awful, will only prolong the pain for Australian households.
“50 basis points over consecutive months is undoubtedly a big move by the RBA, but they’ve still got a pretty tricky inflation problem to deal with having been too slow off the mark, especially with many of the RBA’s international counterparts having gone much harder on inflation sooner.
“Even if inflation does peak in this upcoming quarter, the RBA still needs to show it is serious about getting inflation back to the target range, which will take some time to adjust.”
Compare home loans with Compare the MarketThe Reserve Bank’s increase to 1.85% comes with predictions that the cash rate will hit 2.85% before the end of the year.
“Most Australian households have accumulated a savings buffer through redraw facilities, offset and deposit accounts, sufficient to ride out these rate increases over the short to medium term, however for more vulnerable households it is a crucial time to question whether they are getting the best deal on their home loan.
“There are plenty of competitive offers available in the market at present as the new battleground amongst lenders has shifted to cashback offers, so now is the time to reach out to a mortgage broker to assess your options and consider switching,” Mr Ruddiman said.
For Australians on a variable rate home loan, below is how a 50 basis point increase in the cash rate, if passed on by the lender in full, will affect monthly repayments:
| Mortgage size | Increase in average monthly repayments |
| 50 basis point increase to 4% p.a. | |
| $500,000 | +$142 |
| $600,000 | +$170 |
| $750,000 | +$213 |
| $900,000 | +$255 |
| $1,000,000 | +$284 |
| Monthly repayments do not include any reduction in the mortgage balance over time. These calculations assume: An owner-occupied variable interest rate of 3.50% p.a; 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. | |
Australians with a $600,000 mortgage will likely soon be paying $595 more each month than they were at the start of May, following a 175-basis point jump in just four months.
| Mortgage size | Increase in average monthly repayments since start of May (175 basis points) |
| $500,000 | +$496 |
| $600,000 | +$595 |
| $750,000 | +$744 |
| $900,000 | +$892 |
| $1,000,000 | +$992 |
| 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; 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 and July, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders.
Following both of the previous two cash rate increases, these lenders were quick to pass on the full hike to their customers. Will they do the same again this time?
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.
This page was last updated 4 August 2022.
Compare home loans with Compare the MarketBig four bank rate rises
ANZ rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: “ANZ announced it will increase variable home loan interest rates in Australia,” ANZ said in a statement. “Effective 12 August 2022, ANZ will increase variable interest rates for home, residential investment and line of credit home loans by 0.50% p.a.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Commonwealth Bank rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: “Following the RBA cash rate decision, we’ve announced that our home loan variable interest rates will increase by 0.50% p.a. from 12 August 2022,” Commonwealth Bank said in a statement. “For those customers looking for greater certainty around their future mortgage repayments, we’re offering a special 4-year Owner Occupier Principal and Interest fixed home loan package rate of 4.99% p.a. (comparison rate 5.46% p.a.) from 5 August 2022 for a limited time. We will also increase the interest rates for select deposit products.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
NAB rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: “NAB has today announced changes on savings products and home loans,” NAB said in a statement. ” NAB’s iSaver (standard variable and bonus) will increase by 0.50% p.a. effective from 12 August 2022.
NAB’s Reward Saver bonus rate will increase by 0.50% p.a. to 1.75% effective from 12 August 2022. NAB’s 12-month term deposit will increase 0.50% p.a. to 3.00% effective from 12 August 2022.
“The standard variable home loan interest rate will increase by 0.50% p.a, effective from 12 August 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Westpac rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 18 August
Other info: “Home loan variable interest rates will increase by 0.50% p.a. for new and existing customers, effective 18 August,” Westpac said in a statement. “Westpac will also offer a special four-year fixed rate of 4.99% p.a. for owner-occupied customers on principal and interest repayments with the Premier Advantage Package*, effective 9 August.”
Interest rates will also change for some deposit customers.
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
AMP rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: There will be a 0.50% pa for all new and existing customers (excluding AMP First). For AMP First new and existing customers, there will be an increase of 0.25% pa (and 0.40% pa for Owner Occupied Interest Only)
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Bank of Melbourne rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 18 August
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, Bank of Melbourne today announced a 0.50% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” Bank of Melbourne said in a statement. “These variable rate changes will come into effect on Thursday 18 August 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Bank SA rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 18 August
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, BankSA today announced a 0.50% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” Bank SA said in a statement. “These variable rate changes will come into effect on Thursday 18 August 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Bankwest rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: “There’s been a change to our home loan interest rates and we’re here to help you understand what this might mean for you,” Bankwest said in a statement. “Our Standard Variable Rate (SVR) for home loans will be increasing by 0.50% p.a. for new and existing customers, taking effect on 12 August 2022. We’ve made the decision to adjust interest rates in response to the RBA’s change to the official cash rate, and due to inflationary pressures pushing up the cost of funds at institutions from which we borrow, which we use to fund loans to our customers.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Bendigo & Adelaide Bank rate rise
Rate hike: TBD
Customers affected: TBD
Effective from: TBD
Other info: TBD
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
BOQ rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 9 August
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.50%, BOQ will lift variable home interest rates by 0.50% per annum (p.a.) from 9 August 2022,” BOQ said in a statement. “To support savings customers, BOQ will continue to monitor rates on its popular myBOQ savings accounts to ensure they remain competitive.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
HSBC rate rise
Rate hike: TBD
Customers affected: TBD
Effective from: TBD
Other info: TBD
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
ING rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 9 August
Other info: “Variable home loan interest rates for new and existing owner occupier and investor borrowers are increasing by 0.50% per annum on 9 August 2022,” ING said on its website. “Customers making interest only repayments will see updated repayment information starting 1 September 2022 and customers making principal and interest repayments will see minimum repayments increase from 30 September 2022. Existing home loan customers will be sent a letter from 31 August 2022 confirming your new rate and new repayment information.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Macquarie rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 12 August
Other info: “Macquarie considers a range of factors when setting interest rates, including the official cash rate,” Macquarie said in a statement. “Following the RBA’s cash rate decision, Macquarie is increasing variable home loan reference rates by 0.50% p.a. This will be effective 12 August, 2022.
“Macquarie will also decrease its fixed home loan interest rates by up to 0.75% p.a., for new customers and existing variable rate customers who are seeking to fix their interest rate. This will be effective by 5 August, 2022.”
Some Macquarie transaction and savings accounts will also see interest rates change in August.
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
ME rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 6 August
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.50%, ME will lift variable home interest rates by 0.50% per annum (p.a.) from 6 August 2022,” ME said in a statement. “To support savings customers, ME will continue to monitor rates on its popular term deposit and savings accounts to ensure they remain competitive. If you’re a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
St. George rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 18 August
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, St.George today announced a 0.50% per annum (p.a.) increase to our variable home loan interest rates, for new and existing home loans,” St. George said in a statement. “These variable rate changes will come into effect on Thursday 18 August 2022.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
Virgin Money rate rise
Rate hike: 50 basis points
Customers affected: Variable rate customers
Effective from: 9 August
Other info: “To support savings customers, Virgin Money will continue to monitor rates on its popular savings accounts to ensure they remain competitive,” Virgin Money said in a statement. “If you’re a customer with us and your loan rate increases, rest assured we will write to you to advise you of your new repayment amount and when it takes effect.”
Previous rate rises:
- May 2022: 25 basis points
- June 2022: 50 basis points
- July 2022: 50 basis points
