Homeowners in Australia are facing a significant increase in borrowing costs as interest rates continue to rise. Major banks such as Commonwealth Bank, NAB, and ANZ have quickly passed on the latest 0.25% rate hike to variable-rate loans, with Westpac expected to follow soon.
This increase has pushed the average variable interest rate for homeowners to 6.01%, surpassing the 6% threshold. At the same time, Westpac has temporarily maintained the lowest variable rate among major banks at 5.74%.
The rate hikes have not been limited to variable loans; fixed-rate mortgages have also been affected. Commonwealth Bank and NAB have raised fixed interest rates by as much as 0.35%, with NAB’s fixed rates now exceeding the 5% mark.
While Westpac currently offers the lowest fixed rate among the major banks at 5.79% for a one-year term, analysts expect it to rise soon. Data shows a shrinking number of competitive fixed-rate loan options.
Just last month, more than 20 lenders were offering rates below 5.5%, but today only two options remain, with the lowest rate at 5.49%. The average two-year fixed interest rate now stands at 6%, reflecting the rapid deterioration in the fixed-rate lending market.
