Australia’s big four banks have all moved to pass on the Reserve Bank of Australia’s 25 basis point increase to their variable rate mortgages.

ANZ was the first of the big banks to pass on the full rate rise, increasing its standard variable mortgage rate for new and existing customers by the full 25 basis points from October 12, bringing the rate to 6.06 per cent.

This move was closely followed by an announcement from the National Australia Bank and the Commonwealth Bank, and finally Westpac at 4:30pm yesterday afternoon.

CBA and NAB will both retain the lowest variable mortgage rate of the big four, at 5.99 per cent while Westpac’s rate will sit at the same level as ANZ, at 6.06 per cent from Monday.

The decisions follow the Reserve Bank of Australia’s rate hike on Tuesday that pushed the cash rate from the emergency low of 3 per cent, up to 3.25 per cent.

The rate rise is not limited to variable rate mortgages, with Westpac announcing that they will pass along the increase to personal and deposit accounts including its Reward Saver, eSaver and Business Max-i Bonus accounts.

CBA will pass on the rate rise to key deposit rates, while ANZ has said that it will raise its rates on selected products by as much as 0.50 percentage points per annum.

The banks seemed to heed Treasurer Wayne Swans warning on not passing more than the Reserve Bank’s move, by sticking to a quarter of a percentage point increase on their variable mortgage rates.

The rate rises will add about $45 to the monthly repayments on a standard 25-year mortgage of $300,000.

Sources: WA today.com.au and Mortgage Business