Lender’s fresh blow to mortgage holders

AMP Bank has joined Westpac in announcing the hike.

“Following the Reserve Bank of Australia’s decision to increase the official cash rate by 0.25 per cent, AMP Bank has announced interest rate changes for customers,” the lender said.

“The interest rates for variable rate home loans will increase by 0.25 per cent per annum (pa) effective 9 June 2023 for new customers and 12 June 2023 for existing customers.”

AMP Bank said it would also apply the rate increase to saving products – AMP Notice products will increase by 0.25 per cent effective June 13, 2023, as will cash account rates offered by AMP Bank to investment clients and superannuation members.

“In addition, AMP Bank will be offering highly competitive rates on a range of term deposit products effective 13 June 2023,” the lender said

On Tuesday, Westpac was the first of the four big banks to pass on the RBA’s latest interest rate rise announced just hours earlier.

The variable rate changes to home loans will come into effect from Tuesday, June 20, but Westpac made no mention on passing the rate increase on to any of its savings products.

The central bank hiked the cash rate by 0.25 percentage points to 4.10 per cent – the highest level since April 2012 – when it met on Tuesday, with a warning there could be more hikes on the way.

It means the average borrower with a $500,000 home loan before the RBA began its aggressive tightening cycle last May could now be paying $1134, or 49 per cent, more a month.

More to come