Australian lenders NAB and ANZ to hike home loan rates by 50 basis points

(Reuters) – The Australian and New Zealand banking group joined National Australia Bank in raising variable interest rates on home loans on Friday, fully passing on a 50 basis point (bps) rate hike from the central bank on their customers.

Westpac Banking Corp and the country’s main lender, the Commonwealth Bank of Australia, are also expected to raise their mortgage rates, after the Reserve Bank of Australia (RBA) raised its cash rate for the fifth time since May to a high of seven years of 2.35%.

New tariffs for ANZ and NAB customers will come into effect on September 16, they said.

Both lenders added that savings account rates remain under review.

So far, Australian lenders have followed the RBA in passing on the full rate hike to their clients, expecting to reap the benefits at a time when the country’s property market shows signs of cooling.

House prices in the country suffered their biggest drop in 40 years in August as rising interest rates and cost-of-living pressures ripped a hole in demand, threatening to undermine the household wealth and confidence.

(Reporting by Harish Sridharan; Additional reporting by Jaskiran Singh; Editing by Subhranshu Sahu and Rashmi Aich)

Copyright 2022 Thomson Reuters.

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