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Bendigo Bank follows big four in lifting interest rates after RBA call
Bendigo Bank has followed in the footsteps of the "big four", raising interest rates on its variable home loans by 0.25 per cent.
- Bendigo Bank has followed in the footsteps of the “big four”, raising interest rates on its variable home loans by 0.25 per cent.
- Almost all major lenders have now passed on the RBA’s Tuesday rate hike in full.
- For savings accounts, the news is far more sporadic: Some banks have passed on the hike, but only if conditions are met.
Bendigo Bank is the latest lender to pass on the Reserve Bank of Australia’s (RBA) Tuesday interest rate hike in full.
The bank informed customers today that it was lifting the pricing of all of its home loan customers on a variable rate loan by 0.25 per cent.
Bendigo’s Chief Customer Officer Consumer, Christopher Dean, said the bank had “carefully considered” the impact another rate hike would have.
“Bendigo Bank continues to carefully consider the impact of interest rate changes on all of our customers. We know these changes can be challenging for some borrowers and want to reassure our customers that our teams are ready to support those who need our help,” he said.
“At times like these, some borrowers will be considering whether their current home loan suits their needs.”
Bendigo’s call came just hours after CBA and ANZ also locked in a 0.25 per cent hike to their own variable rate products, meaning all “big four” banks had passed on the rate in full.
Bendigo’s hike will take effect immediately, while all the big four banks will have their increases take effect on Friday, November 13.
Canstar analysis now shows that a typical borrower taking on a $600,000, 30-year mortgage five years ago would have started paying a relatively modest $2,399 a month.
Fast forward to today, once this latest hike kicks in, and they’ll need to find $4,056. That’s $1,657 more than their initial monthly cost.
Of the big four, Westpac now offers the lowest variable rate at 6.49 per cent, while ANZ offers the highest at 6.75 per cent.
Sally Tindall, data insights director at Canstar, said many borrowers still have time to assess their options.
“Predictable and painful – the big four banks have now confirmed their mortgage rates are on the rise, once again, by the full 0.25,” she said.
“While the big banks will start charging their variable home loan customers higher rates from next Friday, borrowers should know it can take up to three months for the extra money to start coming out of your bank account.
“The banks do this to give customers ample time to raise the red flag, and for some, this rate hike could be the one that pushes them to do this.”
What about impacts to savings accounts
While banks are typically quick to pass on interest rate hikes to borrowers, savings accounts rarely see the same speed.
On Wednesday, ANZ announced it would increase the bonus rate on its Plus Growth Saver product by 0.25 per cent, and Westpac also announced it would lift the interest rate on its bonus saver accounts by the same amount.
CBA and NAB have so far made no call on their savings rates.
“For savers, the news is unfortunately coming through on a drip-feed,” Tindall said.
“Westpac and ANZ have confirmed select savings rates are getting a boost, but these rate rises are contingent on customers meeting the banks’ terms and conditions.
“Meanwhile, CBA and NAB haven’t even bothered to announce savings relief today.
“It’s one of the most frustrating plays in the banking handbook: rapid, universal hikes for borrowers, conditional ones for select savers.”
Topics: Banking, Banks, Interest Rates