RBA Governor Michele Bullock announced a March cash rate rise. Picture: Gaye Gerard
ANALYSIS
One rogue bank has bucked the quick rate hike trend set by the big four, announcing it would give customers a break for a month before passing on the RBA’s March rate hike.
Bank of Sydney announced it would be passing on the 0.25 per cent hike in full, but not until the 14th of April.
The delayed increase to standard variable rates for all new and existing home and business lending loans was designed to support customers through changing economic conditions, according to Bank of Sydney chief banking officer Huw Bough.
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“We recognise that rising rates can place added pressure on households and small businesses. By allowing a little breathing room before this change takes effect, we’re aiming to help customers plan and adjust with greater confidence,” Mr Bough said.
SCROLL DOWN FOR FULL LIST OF LENDERS YET TO HIKE
Huw Bough, chief banking officer at Bank of Sydney
“As a smaller bank, staying close to our customers matters to us, and we remain committed to providing personalised support and practical tools to help them manage their finances.”
And in another bonus for customers, Bank of Sydney savings accounts will see their interest rates increased by 0.25 per cent from 1 April, meaning savers will get greater returns on their money for two weeks before borrowers begin paying extra on their home loans.
The move was in stark contrast to the nationa’s biggest lenders, who offered sympathetic messages to customers at the same time as announcing their own rate hikes would take effect within 10 days.
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NAB’s group executive of personal banking Ana Marinkovic said she knew another rate increase “will be challenging for many Australians” and encouraged customers feeling the pressure to reach out “as soon as possible. There are options available and our bankers are here to help”.
CBA followed suit with its own message about “additional pressure on household budgets” and noting the bank was “committed to making support simple and accessible”.
Both banks confirmed their new variable rates would be ineffect by 27 March.
ANZ also chose 27 March, while Westpac’s hike will be effective on 31 March.
NAB’s Ana Marinkovic said her bankers are “here to help”. Picture: Jake Nowakowski
Westpac will now have the cheapest variable rate of the big four at 5.74 per cent, followed by CBA at 5.84 per cent.
ANZ (6.00 per cent) and NAB (6.19 per cent) are no longer in the ‘fives’.
Finder follows the rate movements of 109 banks on its rate tracker page.
Finder head of consumer research Graham Cooke said the rate hike was a “psychological blow”.
“One more hike and we’re back to the highest rate since 2011. This is an annual increase of over $1400 for the average borrower,” he said. “
“Finder research shows that the gap between the average rate in the market and the lowest tends to be around 25bp – so you could remove this cut by refinancing.
“All eyes will now settle on the Strait of Hormuz – which will remain vulnerable to obstruction no matter who decides they can declare an end to the war. To avoid another hike next month, the oil will need to flow.”
Canstar data insights director Sally Tindall.
Canstar data insights director Sally Tindall said bank customers feeling the pressure should contact the banks, but be careful about how they use support options.
“If you’re starting to feel the strain, the worst thing you can do is stay silent. Banks have a legal obligation to help, but you need to reach out early,” Ms Tindall said.
“Switching to interest-only or extending your loan term can offer short-term relief, but they come at a long-term cost. What eases your budget now may add thousands in interest later.
“These options should be treated as a lifeline, not a lifestyle – they’re there to help you through a rough patch, not as a permanent solution.”
LENDERS WHO HAVE HIKED- NEW RATE%- EFFECTIVE DATE
Based on variable owner-occupier loans with 80% loan to value ratio (LVR)
Source: Finder
ANZ-6.00- 27 March
CommBank- 5.89- 27 March
NAB- 6.19- 27 March
Westpac- 5.84- 31 March
AMP- 5.93- 23 March
Arab Bank Australia- 9.04- 31 March
Aussie- 5.83- 25 March
Australian Military Bank- 6.89- 1 April
AusWide Bank- 5.84- 26 March
Bank Australia- 5.89- 1 April
Bank First- 5.84- 2 April
Bank of Melbourne- 6.14- 31 March
Bank of Sydney- 5.79- 14 April
Bank of us- 5.89- 2 April
BankSA- 6.14- 31 March
Bankwest- 5.99- 27 March
Bendigo Bank- 5.79- 25 March
Beyond Bank- 6.09- 31 March
BOQ- 5.88- 20 March
Firefighters Mutual Bank- 5.94- 26 March
Geelong Bank- 6.24- 30 March
Goulburn Murray Credit Union- 5.94- 10 April
Greater Bank- 5.69- 2 April
Heritage Bank- 5.84- 27 March
Homeloans- 6.24- 27 March
HomeStar Finance- 5.84- 23 March
HSBC- 5.84- 30 March
ING- 5.89- 27 March
Laboratories Credit Union- 5.44- 10 April
Macquarie Bank- 5.89- 2 April
ME- 5.88- 21 March
MyState Bank- 5.84- 26 March
Newcastle Permanent- 5.74- 27 March
NRMA Insurance Home Loan- 5.83- 27 March
People’s Choice Credit Union- 5.84- 27 March
Pepper Money- 6.84- 27 March
Qantas Money- 5.98- 27 March
Qudos Bank- 5.79- 1 April
RACQ Bank- 5.79- 31 March
Regional Australia Bank- 5.84- 31 March
RESIMAC Financial Services- 6.24- 27 March
Skip- 6.14- 23 March
Southern Cross Credit Union- 5.98- 1 April
St George- 6.14- 31 March
Suncorp- 5.91- 27 March
Teachers Mutual Bank- 5.94- 26 March
The Mutual Bank- 5.94- 9 April
Ubank- 5.89- 26 March
UniBank- 5.94- 26 March
Unloan- 5.69- 27 March
Virgin Money- 5.69- 21 March
LENDERS YET TO HIKE
Athena- 5.89
Australian Mutual Bank- 5.49
Bank of China- 5.43
Bank Orange- 5.64
BankVic- 5.60
BankWAW- 5.49
BCU Bank- 5.54
Bluestone- 6.34
Border Bank- 5.34
Broken Hill Bank- 6.39
Cairns Bank- 5.79
Central Murray Bank- 5.74
Central West Credit Union- 6.90
Coastline Bank- 5.64
Community First Bank- 5.69
Credit Union SA- 5.74
Defence Bank- 5.94
Dnister- 5.79
Easy Street- 5.59
Family First Credit Union- 5.65
Fire Service Credit Union- 5.59
First Option Bank- 5.69
Firstmac- 5.93
Freedom Lend- 5.39
G&C Mutual Bank- 5.25
Gateway Bank- 5.69
Great Southern Bank- 5.84
Horizon Bank- 5.39
Hume Bank- 5.59
Illawarra Credit Union- 5.69
IMB- 5.54
La Trobe- 5.99
Liberty Financial- 5.99
loans.com.au- 5.54
Mortgage House- 5.44
MOVE Bank- 5.49
NICU- 5.44
P&N Bank- 5.69
Pacific Mortgage Group- 5.34
Police Bank- 5.34
Police Credit Union- 5.39
QBank- 5.59
Queensland Country Bank- 5.44
Reduce- 5.54
resi- 6.34
South West Slopes Bank- 5.10
Summerland Bank- 5.54
The Capricornian- 5.59
The Mac- 5.42
Tiimely Home- 5.54
Transport Mutual Credit Union- 5.39
Unity Bank- 5.25
Up Home Loan- 5.45
Well Money- 5.69
Yard- 5.64
Yellow Brick Road- 6.34
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