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LENDING & CREDIT | Cesar Tordesillas, Australia
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NAB and Commbank decision on rate increase, awaited

After ANZ and Westpac's increased interest rates independently of the Reserve Bank, analysts are expecting Commonwealth Bank and NAB to follow suit.

 

Customers with an average mortgage of $250,000 with Westpac will see their repayments increase by almost $200 a year, while homeowners with ANZ will fork out an extra $169 per year for the average home loan of $280,000.

ANZ's decision is expected to net the bank an extra $50 million a year, assuming 80 per cent of owner-occupied lending is at variable rates.

Westpac will make even more, with early estimates suggesting the bank could pocket more than $100 million extra.

Treasurer Wayne Swan slammed the rise, saying customers would now be "absolutely ropable".

"Major banks in this country are very profitable," he said. "Their net interest margins are back to where they were prior to the global financial crisis."

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