The Reserve Bank of Australia (RBA) has confirmed it is lifting the cash rate for the eighth consecutive month, with another 25 basis point increase following December’s Board meeting.
At the meeting, the Board decided to increase the cash rate target by 25 basis points to 3.10 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.00 per cent.
Philip Lowe, Governor of the Reserve Bank of Australia, said the latest rate rise was necessary.
“There has been a substantial cumulative increase in interest rates since May,” Mr Lowe said in a statement. “This has been necessary to ensure that the current period of high inflation is only temporary. High inflation damages our economy and makes life more difficult for people. The Board’s priority is to re-establish low inflation and return inflation to the 2–3 per cent range over time.”
Compare the Market’s General Manager of Money Stephen Zeller said it’s important for homeowners to talk to their lender.
“Those who don’t ask, won’t receive,” Mr Zeller said.
“Aussie homeowners need to be looking at their rate and checking it twice this Christmas, otherwise they could end up paying thousands of dollars in extra interest over the life of their loan unnecessarily.”
As property prices fall and interest rates continue to rise, Mr Zeller said some people may now have to sell for less than what they bought for.
“Those on a fixed, or a climbing variable rate, need to wake up and act, especially with a large portion of fixed rates due to expire mid-next year,” Mr Zeller said.
“The rude reality is that fixed rates which are due to expire at the end of 2023 can expect a median increase of around $650 in their monthly repayments.
“It would be a good idea to start talking with your lender a couple of months before your fixed rate is due to end – just to see what the options are. If you’re not happy with the options available, you’ve got to shop around.
“There are plenty of deals out there, plenty of cash back offers to entice people across so you need to do your research and decide what’s best in terms of products and features.
“It’s not just about a cheap rate anymore, there are some great features available, but we know that generally, 95% of borrowers just want a basic home loan, they aren’t after those bells and whistles.”
As we did in May, June, July, August, September, October and November, Compare the Market is tracking interest rate movements from some of Australia’s biggest banks and lenders.
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 06 December 2022.
Compare home loans with Compare the MarketBig four bank rate rises
ANZ rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info: “ANZ today announced it will increase variable home loan interest rates in Australia,” ANZ said in a statement. “Effective 16 December 2022, ANZ will increase variable interest rates for home, residential investment and line of credit home loans by 0.25% p.a.”
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
Commonwealth Bank rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info: “We encourage our customers to message us in the CommBank app to explore different support options or to connect with a specialist,” CBA’s Group Executive, Retail Banking, Angus Sullivan said in a statement. “Having those conversations earlier can not only help us explore more options but can alleviate the anxiety that can come with worrying about your financial situation,” Mr Sullivan said.”
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
NAB rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info:
“It’s important for anyone finding the increasing interest rates a challenge to lean on their bank for support,” NAB Group Executive for Personal Banking Rachel Slade said in a statement.
“At NAB, we have a dedicated team who listen to each customer’s individual situation and are able to offer tailored solutions – whether that be a reduced payment arrangement, payment break or restructuring their loan.
“Regardless of who you bank with, I encourage people to speak to their bank early if they are concerned. The results speak for themselves. When a customer gets in touch with NAB Assist at the early stages of their concerns about their finances, we’re able to get more than 90% back on their feet within 90 days.”
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
Westpac rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 20 December.
Other info: “While the majority of our customers are managing well through this cycle with a strong jobs market and savings built up during the pandemic, we understand some customers may find it more difficult,” Westpac Consumer and Business Banking Chief Executive, Chris de Bruin, said in a statement. “We have an experienced customer support team ready to work with each customer one-on-one to offer help if they are in a tough spot.”
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
AMP rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 19 December
Other info: “AMP Bank is making changes to its variable lending rates for new and existing owner occupiers and investors, following the Reserve Bank of Australia’s (RBA) announced increase to the cash rate on 6 December 2022,” AMP said in a statement. “These changes will be effective 16 December 2022 for new customers and 19 December 2022 for existing customers.”
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
Bank of Melbourne rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 20 December
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, Bank of Melbourne today announced a 0.25% 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 Tuesday 20 December 2022.”
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
Bank SA rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 20 December
Other info: “Following the Reserve Bank of Australia (RBA’s) decision to increase the official cash rate, BankSA today announced a 0.25% 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 Tuesday 20 December 2022.”
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
Bankwest rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info: “The latest change to our home loan rates will take effect on 16 December 2022, when our Standard Variable Rate (SVR) for home loans will increase by 0.25% p.a. for new and existing customers,” Bankwest said in a statement.
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
Bendigo & Adelaide Bank rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info: “Bendigo and Adelaide Bank has today announced changes to the pricing of its home loan and savings products following the RBA’s decision to lift the cash rate by 0.25% p.a. on Tuesday,” Bendigo & Adelaide Bank said in a statement. “For Bendigo Bank home loan customers on a Variable Rate Loan the interest rate will increase by 0.25% p.a. as of 16 December. The Bank will also increase the rate on its Reward Saver deposit products by 0.25% p.a. as of 22 December.”
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
BOQ rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 9 December
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.25%, BOQ will lift variable home interest rates by 0.25% per annum (p.a.) from 9 December 2022,” BOQ said in a statement. “BOQ will also increase rates on a range of savings accounts.”
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
HSBC rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 28 December
Other info: NA
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
ING rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 13 December
Other info: “The bank will increase all variable home loan rates for new and existing customers by 0.25% per annum,” ING said in a statement. “All variable rate increases will be effective from 13 December 2022.”
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
Macquarie rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 16 December
Other info: NA
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
ME rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 10 December
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.25%, ME will lift variable home interest rates by 0.25% per annum (p.a.) from 10 December 2022,” ME said in a statement.
“ME will also increase rates on its popular Online Savings Account.”
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
St. George rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 20 December
Other info: TBA
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
Virgin Money rate rise
Rate hike: 25 basis points
Customers affected: Variable rate customers
Effective from: 9 December
Other info: “Following the Reserve Bank of Australia’s (RBA) decision to lift the cash rate by 0.25%, Virgin Money will lift variable home interest rates by 0.25% per annum (p.a.) from 9 December 2022,” Virgin said in a statement. “Virgin Money will also increase rates on its popular Boost Saver savings accounts.”
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
