ANZ and NAB will increase their standard variable rates. They join Westpac and Commonwealth Bank, who have made similar announcements in the past week. ANZ will lift their variable rate by 0.18% and NAB will lift theirs by 0.17%. The rate hike will hit ANZ customers on November 20th, and NAB customers on November 12th

All four banks are saying that they need to increase their variable rates, at a time when the RBA rate is on hold, because of the regulatory changes announced by APRA in July. From July 2016, banks using the Internal Ratings Based (IRB) system for credit risk management, will have to increase their capital adequacy requirements. Only the Big Four and Macquarie Bank use the IRB system in Australia. This rate hike by the big four is addition to the changes in investment lending, which swept through the mortgage market in August.

If you have a variable mortgage with one of the big four, then your interest rates will go up by the end of November. How much more interest you are charged on your home loan, depends on the size of your mortgage, and which lender you are with. The table below outlines how much the increase will cost per year: