Commonwealth Bank of Australia, Australia and New Zealand Banking Group and Westpac Banking Corp raised their mortgage rates to match the hike announced by the Reserve Bank of Australia.
The new rates for CBA and ANZ customers will take effect from August 12, while Westpac’s rates will apply from August 18.
Banks have also raised rates on some of their products for customers with savings accounts and deposits.
Australia’s central bank raised its bank rate by 50 basis points to 1.85%, marking 175 basis points of hikes since May in the most drastic tightening since the early 1990s .
The country’s creditors expect to improve their margins and reap the benefits of a rising interest rate environment.
The CBA is due to release its annual results next week, while the National Australia Bank Ltd, ANZ and Westpac are due to release quarterly updates.