SYDNEY, May 11, 2026, 00:01 AEST
Commonwealth Bank of Australia is set to raise variable home loan rates by 25 basis points this Friday, bumping its standard owner-occupier principal-and-interest reference rate up to 8.80% from 8.55%. Borrowers are inching closer to the full weight of this year’s Reserve Bank tightening. The bank said existing customers can check their new rate in NetBank and the CommBank app starting Saturday. CommBank
Timing is key here. Plenty of mortgage holders haven’t yet felt the full brunt of the Reserve Bank of Australia’s three rate hikes this year. Canstar’s data insights director Sally Tindall told NewsWire that banks work out interest daily, but, as she put it, “they don’t ask you for that extra money straight away.” The latest bump is expected to tack on around A$91 a month to repayments for a typical A$600,000 loan, and across all three increases, that’s roughly A$272 more each month. News
The Reserve Bank of Australia’s cash rate jumps to 4.35% as of May 6, marking a 25-basis-point hike that lands the overnight lending benchmark at its highest since 2011. That’s the key rate guiding mortgage and deposit pricing. Officials flagged inflation risks are still skewed upward. Reserve Bank of Australia
Angus Sullivan, who leads retail banking at CBA, acknowledged that plenty of customers are already feeling the strain from rising living expenses, and another rate hike won’t make things any easier. “Our focus is on supporting customers to stay on top of their finances,” Sullivan said. He highlighted the bank’s budgeting tools, options to adjust repayments, and financial assistance resources, nudging customers to consider these avenues. CommBank
CBA isn’t the only major bank making a move. The rest of the big four—Westpac, National Australia Bank, and ANZ—are lining up mortgage rate hikes of their own starting May 15. AMP Bank, though, jumps ahead with its changes kicking in from May 11. Broker Daily pointed out there’s a 21-day gap separating the quickest and slowest lenders this round. Broker Daily
The move isn’t limited to mortgages. CBA is also bumping up eligible variable-rate business loans—think BetterBusiness Loans and Business Overdrafts—by 25 basis points, effective May 15. “Inflation and global conditions continue to influence how Australian businesses operate,” said Mike Vacy Lyle, group executive for business banking at CBA. CommBank
Investors are watching closely, with CBA’s third-quarter trading update on deck for May 13. Lending growth, deposit pricing, net interest margins, arrears—all likely to be in focus. Higher rates often help bank income, though they put pressure on customers managing repayments. CommBank
Sticky inflation remains the central concern. “Economic outcomes will dictate the path of policy,” said CBA Head of Australian Economics Belinda Allen, who flagged the possibility of another rate hike if fiscal settings, wage growth, consumer demand, or June-quarter inflation figures surprise on the upside. Another move isn’t off the table. CommBank
CBA flagged a minor maintenance event for Sunday, noting planned updates to NetBank, the CommBank app, Ceba and its messaging services. According to the bank, both physical cards and digital wallets would remain functional throughout the scheduled work. CommBank
Rates remain the main story. This week, CBA borrowers are hit by the higher mortgage rate. The bigger issue: will the lag in repayments show up in household spending before the RBA’s next decision on June 16?
