Home loan interest rates on the rise

CBA and ANZ are set to bring in close to $1 billion in extra interest from their existing customers after increasing their mortgage rates. Both Banks announced rate increase within minutes of each other on Thursday afternoon, following Westpac’s announcement last week.

CBA will increase all variable home loan rates by 15 Basis points (Bps) from the 4th of October, while ANZ will raise 16 Bps from the 27th of September.

The proposed rate increase means customers with a $400,000 mortgage from CBA will pay an extra $37 a month, or $447 a year, whilst ANZ customers with the same loan will pay an extra $40 a month, or $476 a year.

Last week, Westpac became the first major bank to increase their rates by 14 Bps, sparking criticism from Prime Minister Scott Morrison. He demanded the bank explain itself and suggested unhappy borrowers should shop around.

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