Friday 1 July 2022 01:36 AM Commonwealth Bank and NAB have raised fixed rates trends now Another major Australian bank hikes its fixed interest rates starting TODAY amid warnings the Reserve Bank will hammer mortgage holders National Australia Bank joined the Commonwealth Bank in lifting fixed loan rates Economists expect Reserve Bank to hike rates by 0.5 percentage points on July By Stephen Johnson, Economics Reporter For Daily Mail Australia Published: 01:28 BST, 1 July 2022 | Updated: 01:33 BST, 1 July 2022 Viewcomments Another major bank has now raised its fixed mortgage rates in a clear sign official interest rates are set to surge. National Australia Bank on Friday joined the Commonwealth Bank in lifting their fixed rates. Economists with Australia's biggest banks are widely expecting the Reserve Bank of Australia to raise the cash rate by 0.5 percentage points at its July 5 meeting. This would take the cash rate to a three-year high of 1.35 per cent from the existing level of 0.85 per cent. NAB's one-year fixed rate is increasing by 1.10 percentage points. National Australia Bank on Friday joined the Commonwealth Bank in lifting their fixed rates The Commonwealth Bank on Thursday raised its fixed mortgage rates for both owner-occupiers and investors seeking one to five-year terms, as it warned of another big Reserve Bank rate rise in July. CBA's lowest one-year fixed rate is rising to 4.99 per cent from 3.59 per cent. The five-year rate is increasing to 6.69 per cent from 5.29 per cent. As of this week, no lenders in Australia are offering mortgage rates of less than two per cent. Before the Reserve Bank raised rates in May, Canstar listed 68 products with that low rate, down from 193 a year ago. Canstar finance expert Steve Mickenbecker said Australians would be unlikely to see mortgage rates of less than two per cent ever again in their lifetimes. 'The May and June Reserve Bank cash rate increases have put an end to an era of home loan interest rates below two per cent, something we may never see again,' he said. What a 0.5 percentage point rate rise in July means for borrowers $500,000: Up $136 from $2,079 to $2,215 $600,000: Up $163 from $2,495 to $2,658 $700,000: Up $191 from $2,910 to $3,101 $800,000: Up $218 from $3,326 to $3,544 $900,000: Up $245 from $3,742 to $3,987 $1,000,000: Up $273 from $4,157 to $4,430 Monthly repayments based on popular Commonwealth Bank variable rate rising from 2.89 per cent to 3.39 per cent should the Reserve Bank cash rate in July rise from 0.85 per cent to 1.35 per cent Advertisement Share or comment on this article: All rights reserved for this news site (dailymail) and under his responsibility