The Commonwealth Bank has become the first of Australia’s big four banks to raise variable mortgage rates to match the latest Reserve Bank increase.
Variable mortgage rates with Australia’s biggest home lender are increasing by 0.5 percentage points after the RBA on Tuesday raised the cash rate by 50 basis points to a six-year high of 1.85 per cent.
That means a popular variable rate will rise to 3.89 per cent, up half a percentage point from 3.39 per cent, from August 12.
CBA’s group executive of retail banking Angus Sullivan acknowledged the latest increase would make life harder for borrowers.
‘We have been helping customers understand the changing rate environment and consider what it means for them, and we will continue to be there for them,’ he said.
The Commonwealth Bank has become the first of Australia’s big four banks to raise variable mortgage rates to match the latest Reserve Bank increase (pictured is a Sydney branch)
What a 0.5 percentage point August rate rise means for you
$500,000: Up $141 from $2,215 to $2,356
$600,000: Up $169 from $2,658 to $2,827
$700,000: Up $197 from $3,101 to $3,298
$800,000: Up $225 from $3,544 to $3,769
$900,000: Up $253 from $3,987 to $4,240
$1,000,000: Up $281 from $4,430 to $4,711
Increases based on Reserve Bank cash rate rising from 1.35 per cent to 1.85 per cent taking popular Commonwealth Bank variable rate from 3.39 per cent to 3.89 per cent