Australia's big four banks raise mortgage rates by 25 basis points

Summarised from 2 outlets · Updated 8 Oct, 19:31 · Archive

All four major Australian banks have raised variable mortgage rates by 25 basis points from Friday, following the Reserve Bank's rate increase announced on Tuesday. The Commonwealth Bank's new rate stands at 6.34 per cent, NAB's between 6.29 and 7.04 per cent, ANZ's at 6.50 per cent, and Westpac's lowest rate at 6.24 per cent. This marks the end of any major bank rates beginning with 5.

According to Compare the Market, borrowers with an average loan of around $731,000 will pay approximately $5,568 more per year as rates sit a full 1 per cent higher than they were at the start of 2026. Compare the Market economics director David Koch called the increase 'a gut punch for households'. He said: 'Where are people meant to find an extra $5,500 a year? And that's after tax. On top of that, households are getting hit at the petrol pump and again at the supermarket. Rates are higher, loans are bigger, and we have a whole generation of mortgage payers who have never seen rates this high.'

How it is being reported

• ‘Gut punch’: Australian mortgage holders hit as big four banks lift interest rates from FridayMillions of Australians will face a higher bill starting today, as finance guru David Koch reveals how much more the average mortgage will cost.The West Australian · 8 Oct, 19:02
• ‘Gut punch’: Australian mortgage holders hit as big four banks lift interest rates from FridayMillions of Australians will face a higher bill starting today, as finance guru David Koch reveals how much more the average mortgage will cost.Perth Now · 8 Oct, 19:02

In this story: Commonwealth Bank · NAB · ANZ · Westpac · Reserve Bank · David Koch · Australia

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