04/05/2010 - 15:39

Big banks raise mortgage rates

04/05/2010 - 15:39

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ANZ and Westpac have joined the other big banks, Commonwealth Bank of Australia and National Australia Bank in raising the standard variable home loan interest rate in line with the 25 basis point rise by the Reserve Bank of Australia (RBA).

Big banks raise mortgage rates

ANZ and Westpac have joined the other big banks, Commonwealth Bank of Australia and National Australia Bank in raising the standard variable home loan interest rate in line with the 25 basis point rise by the Reserve Bank of Australia (RBA).

ANZ just announced it would increase the standard variable interest rate on mortgages to 7.41 per cent.

Westpac's standard home loan rate will rise to 7.51 per cent.

Variable business loan rates will also rise by 25 basis points, as will the interest rates on online savings accounts.

The changes are effective from May 7.

Westpac's move follows CBA and NAB which have also raised their standard variable lending rates by 25 basis points.

NAB said its standard variable rate (SVR) on home loans will rise to 7.24 per cent from Friday.

Interest rates on its Homeside lending products and consumer deposits will increase by 25 basis points on Friday, with rates on business loans and deposits rising on Monday.

NAB has undercut its big four rivals in recent months, charging the lowest SVR on home loans to grow market share, and on Tuesday NAB's personal banking boss Lisa Gray said the tactic is beginning to pay dividends.

"We're seeing more home loan customers join NAB than we've seen in years," she said in a statement on Tuesday.

"In February and March, we outgrew financial system in home lending - the first time we've had two consecutive months of growth above system since mid-2005."

CBA matched the RBA's rate rise earlier and lifted its SVR to 7.36 per cent.

The RBA lifted the cash rate by 25 basis points to 4.5 per cent on Tuesday, the sixth rise in eight months.

The standard variable interest rate on mortgages offered by the big four banks currently stands at 7.36 per cent at CBA, 7.51 per cent at Westpac, 7.24 per cent at NAB and 7.41 per cent at ANZ.

 

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