First banks to pass on rates pain revealed

Already stretched household budgets are about to take another hit, with the first four banks confirming they will pass on the Reserve Bank’s latest interest rate increase in full. Mortgage holders are bracing for higher repayments after the Reserve Bank on Tuesday lifted the cash rate by 25 basis points to 4.85 per cent, its highest level since December 2008. Macquarie was first to move after the decision, before Westpac, NAB and Commonwealth Bank on Wednesday confirmed they too would pass on the full increase to variable home loan customers. The banks’ changes will take effect from Friday, November 13, leaving borrowers with little time to prepare for yet another jump in repayments. For someone with a $500,000 mortgage, the latest increase will add about $77 to monthly repayments, taking the total increase in monthly repayments to about $380. On a $700,000 loan, borrowers will need to find an extra $107 a month, taking the total increase to $532. Mortgage holders are set to be hit again after Westpac and NAB joined Macquarie in passing on the Reserve Bank’s latest rate rise, with higher repayments to kick in from next Friday. For a $1 million mortgage, the latest hike will add aro...