The average customer’s home loan will cost an extra $17,000 over 30 years after the nation’s biggest lender increased its rates, according to expert analysis.

On Thursday, the Commonwealth Bank announced its variable mortgage rates would lift by 0.15 per cent in late November, undercutting rival Westpac’s hike of 0.2 per cent last week.

The average Australian home loan of $505,000 will cost almost $17,000 more over 30 years in repayments, or an extra $47 per month, according to finder.com.au.

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Speculation had been mounting on whether the other big banks would follow Westpac.

Westpac cited higher capital costs imposed by the Australian Prudential Regulation Authority (APRA) as the main reason for the decision.

But CBA said its call came on the back of the Turnbull government’s response to the Financial Services Inquiry report.

“We recently raised $5.1 billion to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry,” CBA group executive for retail banking services Matt Comyn said.

“We have now reviewed our home loan pricing in light of these changes.”

CBA’s move has added to expectations of a Melbourne Cup Day Reserve Bank rate cut, causing an immediate dip in the Australian dollar.

See how the cost of your home loan might change under CBA’s rates in the table below:

Shadow Assistant Treasurer Andrew Leigh told Sky News on Thursday he was surprised by CBA’s move to rise the rates.

And Mr Leigh suggested people should shop around to see if they could get a better deal.

“The best thing policy makers can do is to make a competitive environment,” Mr Leigh said.

“Making sure you have a good deal now is important.”

Following the move, ANZ said it did not speculate on future rate moves, while National Australia Bank declined to comment – but both have also recently raised billions of dollars in new capital.

Meanwhile, auction clearance rates in Sydney slumped to a three-year low at the weekend, with some industry experts blaming Westpac’s decision to increase mortgage interest rates on the results.

Westpac said the higher interest rates would cost customers up to $155 billion and impact about 12 per cent of home loans in Australia.

Rates offered by the big four banks:

Westpac: up 0.2 per cent to 5.68 per cent

Commonwealth: up 0.15 per cent to 5.6 per cent

NAB: up 0.17 per cent to 5.6 per cent

ANZ: unchanged at 5.38 per cent

– with Kaitlin Thals and AAP