Cash Rate Decision July 2022: RBA Raises Cash Rate To 1.35%

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Otto Dargan

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The Reserve Bank of Australia (RBA) increased the cash rate by 0.50 percentage points in July, taking it even higher, to 1.35%. RBA Cash Rate Target July 2022

How Does The Cash Rate Increase Affect My Interest Rate?

Lenders add a margin to the official cash rate to determine the variable interest rate at which they lend to customers. So if you have a variable interest rate, then it will almost certainly go up with the increase of the cash rate.

Did The Big Four Pass On The Rate Rise?

All the big four banks will be passing on the rate increase on their variable-rate home loan interest rates in full:
  • ANZ: 0.50 percentage points, effective from 15 July 2022
  • CBA: 0.50 percentage points, effective from 15 July 2022
  • NAB: 0.50 percentage points, effective from 15 July 2022
  • Westpac: 0.50 percentage points, effective from 20 July 2022

How Much Is My Monthly Repayment Going to Increase?

The following chart shows how much the extra .50 percentage points (or 50 basis points) in interest will cost homeowners, based on the size of their loan. (These example loan repayments were determined using our repayment calculator, based on the lowest variable rate we can offer over a 30-year term as of 5 July 2022. Rates are subject to change from this date.)
Loan Amount Before Increase (2.51%) After Increase (3.01%) Difference
$500,000 $1,978 $2,111 $133
$600,000 $2,374 $2,533 $159
$700,000 $2,769 $2,955 $186
$800,000 $3,165 $3,377 $212
$900,000 $3,561 $3,799 $238
$1 million $3,956 $4,221 $265

How To Lower Your Repayments

Home Loan Experts CEO Alan Hemmings gives tips on how you can minimise your mortgage repayments:

What To Do Now

Home Loan Experts can help. Our mortgage brokers know how to get you the best rate in a rising market or refinance to keep your home loan competitive. Call 1300 889 743 or enquire online to speak to one of our expert brokers today!

About the Author

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Otto Dargan

Otto Dargan is the Founder of Home Loan Experts. He is involved in strategic and operational matters. He utilises his time in seeking... [Read More]

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