Which banks did not pass on the recent increase in the rate of loans to customers?

ANALYSIS

Some banks were slow to disburse money to borrowers last year, with a number of lenders dragging their heels for weeks, or even months, before providing long-awaited relief to their customers.

History tells us that rate hikes are a different story though.

Banks tend not to waste time on interest rate hikes, some don’t even wait for the RBA before they start raising rates.

I’m looking at you, the 54 lenders who raised rates on some of their loan products in the two days before the RBA’s first annual meeting in February.

Last year, our shame list shined a light on lenders who were dragging their feet or trying to avoid a rate cut, rather than passing on the full 0.25 percent reduction.

MORE:The RBA has warned that it is playing with fire

SCROLL DOWN TO SEE WHAT YOUR LENDER HAS RELEASED

Now that the cash rate has been raised to 3.85 percent, we thought we’d see if they take a little longer to act, or if, against hope, they decide not to pass the rate hike, or at least not pass it fully.

But don’t get your hopes up, according to Finder head of consumer research Graham Cooke.

“Previous Finder research shows that Australia’s biggest banks are quick to pass on the full effect of interest rate rises, while they tend not to pass on the full rate cut. This has had a huge impact on borrowers with variable rate mortgages,” Mr Cooke said. “The data shows that banks were less generous during the good times when the RBA cut rates repeatedly in 2019 and 2020. The Big Four went under the full cut in other months.

MORE:Wild price tag for abandoned Aus houses

“By 2025, however, virtually all banks will collapse under enormous pressure from the cost of living crisis. So, times have changed.”

Mr Cooke said the banks justified their actions by pointing to their funding costs and legal obligations to their profits and shareholders.

“Although it seems unfair that banks are traditionally better at passing on rising interest rates than lowering interest rates, major banks balance the many different demands of customers. This includes the need to keep savings levels at a certain level, which tend to fall when mortgage rates rise and vice versa,” he said.

MORE:A number of households have debts of more than $1m

“Whether you have a mortgage with a Big Four bank or a small online lender, finding the best deal is ultimately the borrower’s responsibility. Some Finder research found that the difference between the average and lowest rates in the market is equal to a single price reduction – so if your rate goes up, switching can be a hedge against that.”

LENDERS WILL CONTINUE – GOOD % RATE (For 80% LVR owner loan, paying principal and interest)

TBA

LENDERS GOING UP – GOOD RATES % (With 80% LVR owner loan, paying principal and interest)

AMP- 5.43

ANZ- 5.5

Arab Bank of Australia- 8.54

Athena- 5.64

Aussie- 5.33

Military Bank of Australia- 6.39

Australian Mutual Bank- 5.24

Auswide Bank- 5.34

Bank of Australia- 5.39

Bank First- 5.34

Bank of China Limited- 5.18

Bank of Melbourne- 5.64

Bank of Queensland- 5.38

Bank of Sydney- 5.29

Our bank – 5.39

Orange Bank- 5.39

BankSA- 5.64

BankVic- 5.35

BankWAW- 5.24

Bankwest – 5.49

BCU Bank- 5.29

Bendigo Bank- 5.38

Outside the Bank- 5.59

Bluestone – 6.29

Border Bank- 5.09

Broken Hill Bank- 6.39

Cairns Bank- 5.54

Central Murray Bank- 5.49

Central West Credit Union- 6.65

Coastline Bank- 5.49

CommBank- 5.39

Community First- 5.24

Credit Union SA- 5.39

Darling Downs Bank- 5.64

Defense Bank- 5.69

Dnister- 5.54

Easy Street- 5.34

Family First Credit Union- 5.40

Fire Service Credit Union- 5.49

Firefighters Mutual Bank- 5.44

First Choice Bank- 5.44

Firstmac- 5.68

Freedom Loan- 5.14

IG & C Mutual Bank- 4.99

Gateway Bank- 5.44

Geelong Bank- 5.74

Goulburn Murray Credit Union- 5.44

Great Southern Bank- 5.49

Greater Bank- 5.19

Treasure Bank- 5.34

homeloans.com.au- 5.74

Home Star- 5.34

Horizon Bank- 5.14

HSBC- 5.34

Hume Bank- 5.34

Illawarra Credit Union- 5.24

IMB- 5.29

ING-5.39

La Trobe Financial- 5.69

Laboratories Credit Union- 5.10

Liberty Financial- 5.74

loans.com.au- 5.29

Macquarie Bank- 5.39

ME- 5.38

Mortgage House- 5.19

MOVE Bank- 5.14

MyState- 5.34

NAB- 5.69

Newcastle Permanent- 5.24

Northern Inland Credit Union- 5.24

NRMA Home Loans- 5.33

IP & N Bank- 5.44

Pacific Mortgage Group- 5.14

People’s Choice Credit Union- 5.34

Pepper’s money – 6.34

Police Bank- 5.09

Police Credit Union- 5.24

Qantas fee- 5.48

QBANK- 5.34

Qudos Bank- 5.29

Queensland Country Bank- 5.19

RACQ Bank- 5.29

Reduce Home Loans- 5.29

Regional Bank of Australia- 5.34

Conclusion – 6.34

RESIMAC- 5.74

South West Slopes Bank- 5.10

Southern Cross Credit Union- 5.48

St. George- 5.64

Sucasa- 5.64

Summerland Bank- 5.29

Suncorp Bank- 5.40

Teachers Mutual Bank- 5.44

Capricornian- 5.34

Mac- 5.17

Mutual Bank- 5.19

Home in Times- 5.29

Transport Mutual Credit Union- 5.14

Bank- 5.39

UniBank- 5.44

Unity Bank- 4.99

Withdraw money- 5.19

Upper Bank- 5.20

Pure Money- 5.19

Good Money- 5.44

Westpac- 5.34

WLTH- 5.50

Yard – 6.43

Yellow Brick Road- 6.34

See the full list here