According to RateCity,the average owner-occupier’s monthly repayments will rise by $144 in September as a result of this week’s interest rate rise being passed on by banks in full.
Since the RBA started lifting rates in May,the cumulative rise in repayments is now more than $1000 a month on an $800,000 loan.
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The country’s biggest lender,the Commonwealth Bank,has often been the first of the big four banks to move its rates following an RBA decision.
The Reserve Bankincreased official interest rates for a record fifth consecutive month on Tuesday,lifting them by another half of a percentage point as it races to bring inflation under control.
The RBA increased the cash rate to a seven-year high of 2.35 per cent. At the start of May,the cash rate was 0.1 per cent. It is the most aggressive tightening of official rates by the bank since 1994,and the first time it has lifted rates at five consecutive meetings.
NAB’s group executive for personal banking,Rachel Slade,said people with concerns about interest rate changes should contact their bank.
“An early conversation with your bank is so important to staying on track financially,” Slade said.
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“When customers speak to our NAB Assist team early,we see that 90 per cent of our customers are back on their feet within 90 days.”
Macquarie analyst Victor German this week argued the cycle of rising interest rates would significantly widen banks’ net interest margins (NIM),which compare funding costs with banks’ revenue from loans.
German said that of the big four,Commonwealth Bank would experience the biggest boost in its NIM,which he predicted would receive a 27 basis point benefit between this financial year and 2025.
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