The two main Tasmanian-based mortgage lenders will pass on the full interest rate rise to borrowers.
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MyState Bank and Bank of us will join the big four banks - Westpac, the Commonwealth, the ANZ and the NAB - in hiking mortgage rates by 0.25 percentage points, equivalent to the Reserve Bank's cash rate increase announced on Tuesday.
Reserve governor Philip Lowe foreshadowed further increases were likely.
MyState Bank said its increase would take effect on May 19 for new and existing loans.
General manager banking Huw Bough said the bank was always focused on keeping rates competitive for deposit and lending customers.
He said the bank would also increase the interest rates it paid on a number of term deposits.
"We know many of our customers have built up significant savings over the past few years," Mr Bough said.
"It could be for a first home or funding their retirement.
"With low wage growth, our customers have worked hard to save.
"We want to make sure their savings work hard too."
The cash rate increase was the first in 11 years.
" ... some customers may not have previously experienced a rate rise, so we understand there may be many questions and concerns," Mr Bough said.
"However, as a responsible lender, we strictly assess customers' repayment capacity and include a serviceability buffer above current interest rates.
"Many of our customers are also ahead on their repayments, putting them in a better position to withstand an interest rate rise."
Bank of us chief executive Paul Ranson said the bank would pass on the 0.25 percentage point increase to variable home loans, residential investment loans and commercial loans.
"We have made this decision based on several factors, including our commitment to maintaining value for both our borrowers and deposit customers, and a need to be financially sustainable," Mr Ranson said.
"We understand that this will be a new experience for many borrowers.
"We will notify all affected customers of the changes to their loan, and we encourage anyone who is finding it difficult to manage their loan to get in touch with us."
The new variable rates for existing loans would take effect on June 1.
Bendigo and Adelaide Bank will pass on the full amount to home loan customers with variable rate loans.
It will also increase the interest rate on many of its deposit products.