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Commonwealth Bank, Westpac pass on RBA’s full interest rate hike to their variable home loans

Commonwealth Bank and Westpac have become the first of the big four banks to hike their variable-rate home loans just hours after the Reserve Bank of Australia lifted the official cash rate on Tuesday from 0.1 per cent to 0.35 per cent.

CBA was the first to move and said it would pass on the full 0.25 percentage-point increase on May 20. Westpac will also pass on the full rate starting on May 17, and ANZ has said it will follow suit.

New standard variable rates on CBA’s owner-occupier loans — paying both principal and interest — will jump to 4.80 per cent while interest-only loans will rise to 5.29 per cent. Investors will also feel the pain of the RBA’s move to bring soaring inflation under control, with investor principal and interest rates rising to 5.38 per cent and interest-only to 5.64 per cent.

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