All big four banks have so far passed on the full official interest rate rise to their home loan customers with the National Australia Bank the last to pass it on.
Commonwealth, Westpac, and ANZ had each previously announced their variable home loan interest rates will increase by 0.25 per cent, in line with the official cash rate rise announced by the Reserve Bank of Australia.
CBA customers will cop an increase to home loan repayments from May 20, while ANZ's rate rise is effective a week earlier, from May 13 and Westpac's begins on May 17.
The RBA hiked the cash rate on Tuesday for the first time in 11 years to 0.35 per cent to curb soaring inflation - surprising financial markets with a bigger than expected increase.
Customers of CBA, Westpac, NAB and ANZ with a $500,000 home loan will see their monthly repayments go up by $65 from $1,922 to $1,987.
On a million dollar home loan, monthly repayments with the banks will jump $130 from $3,843 to $3,973.
Three of Australia's big four banks have so far passed on the full official interest rate rise to their home loan customers. Pictured: Commonwealth Bank in Sydney
In most cases it is expected that home loan customers with investment properties will also pass the extra costs directly on to renters.
A senior Westpac spokesperson urged customers who know they will now struggle with repayments to ring the bank and make arrangements.
'We know that some home loan customers may still experience difficulty and we encourage these customers to call us as soon as possible, so our specialist customer teams can work with them to tailor a financial solution,' said Chris de Bruin, Westpac's chief executive consumer and banking.
A Commonwealth spokesperson acknowledged many of its home loan customers would never have experienced a rate rise.
'We are here to help customers who have loans and are considering how repayments might change,' said Angus Sullivan, CBA's group executive, retail banking.
'Some options available to help our customers manage repayments include fixing or splitting loans or setting up an offset account.'
Earlier, RBA Governor Philip Lowe hinted at 'further increases in interest rates' in coming months with economists widely tipping months cash rate hikes until Christmas.
The Reserve Bank of Australia has raised interest rates for the first time in 11 years to curb soaring inflation (pictured is an auction at Hurlstone Park in Sydney)
A senior Westpac spokesperson urged customers who know they will now struggle with home loan repayments to ring the bank and make arrangements
Tuesday's announcement signaled the first home loan rate rises during an election campaign since 2007.
The cash rate rose by 0.25 percentage points on Tuesday, ending the historic era of a record-low 0.1 per cent cash rate and marking the first increase since November 2010.
This was also much bigger than the 0.15 percentage point rise financial markets were expecting, threatening the re-election hopes of Prime Minister Scott Morrison ahead of the May 21 poll.
ANZ followed CBA by passing on the full 0.25 RBA rate rise to home loan customers from May 13
This was also much bigger than the 0.15 percentage point rise financial markets were expecting, threatening the re-election hopes of Prime Minister Scott Morrison (pictured with Treasurer Josh Frydenberg on Tuesday) ahead of the May 21 poll
The official rate now stands at 0.35 per cent - the highest since March 2020 at the start of the pandemic - after inflation in the year to March soared by 5.1 per cent - the fastest pace in 21 years.
'We are now in this journey out of the pandemic,' Mr Morrison said on Tuesday after the decision.
'Inflation has picked up significantly and more than expected.
'Of course, a 25 basis point increase in the cash rate, that will be harder and we understand that.'
The central bank move is also the first during an election campaign since November 2007, when former Liberal prime minister John Howard lost power after 11 years and his own seat.
Tuesday's announcement signaled the first home loan rate rises during an election campaign since 2007
Millions of Aussies will now be hit with increased costs on their home loans but also their rents because of the RBA's rate rise
But Mr Morrison said many borrowers had fixed their mortgages in preparation for a rate rise and sidestepped a question about whether this had cost him the election.
'Australians have been preparing for this for some time,' Mr Morrison said.
Dr Lowe acknowledged the increase on Tuesday was 'earlier than the guidance during the darkest days of the pandemic' two years ago when he promised to keep the cash rate on hold until 2024.
'We expect a further increase in the inflation rate,' he said.
'We expect further increases in interest rates will be necessary in the months ahead.
'If interest rates were to remain unchanged, inflation would be substantially higher.'
Three of Australia's Big Four banks - ANZ, Westpac and NAB - are expecting the Reserve Bank to take the cash rate to two per cent by 2023 as rates increase seven more times, with more pain possibly coming in June.
In most cases it is expected that home loan customers with investment properties will pass interest rate rises directly on to renter
Dr Lowe hinted more rate rises were likely in 2022 and 2023 with inflation at
