Broker News

More lenders increase rates

Two more banks have announced interest rate rises following NAB and Westpac’s recent move to lift rates.

ING DIRECT has increased standard variable interest rates by 0.15% for both owner-occupiers and investors, effective 12 December.

This will see the Orange Advantage home loan for owner-occupiers lift to 4.80% and the Mortgage Simplifier home loan for owner-occupiers reach 4.70%.

In addition, Suncorp has lifted variable rates on new and existing investor home loans by 0.15%, which see Suncorp’s standard variable rate for investors rise to 5.87%.

Suncorp Banking & Wealth acting CEO, Steven Kluss, highlights bond rates have increased since hitting record lows in the middle of the year, noting bank funding is more driven by changes in bond rates than case rates, which puts costs pressure on variable home loans.

“It’s important to understand most of our existing investor home loan customers are paying rates well below the headline 5.87% standard variable rate for investor loans as a result of our products; various features and benefits,” adds Kluss.

“The decision to increase rates for investor loans was taken to balance the needs to all our stakeholders, including borrowers, savers, shareholders and regulators.”

Published on: Friday, December 09, 2016

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