Broker News

Rates continue to rise

Interest rates are continuing to rise with two more lenders lifting variable rates.

Bendigo Bank has announced a 0.10% increase on variable rates for both owner-occupiers and investors

This will see the bank’s owner-occupier variable rate lift to 5.48% per annum, and the investor variable rate to 5.76% per annum, effective 15 December 2016 for both new and existing loans.

“The cost of funding these loans through both retail deposits and wholesale term debt is rising,” says Bendigo and Adelaide Bank managing director Mike Hirst. “Global financial markets have been volatile and this is impacting the cost of raising funds domestically as competition for stable deposits increases.”

According to Hirst, even after the change the majority of Bendigo Bank’s borrowers pay “well below” the standard variable mortgage interest rate.

“When setting these rates we’ve tried to carefully balance the interests of these mortgage customers, those who earn money through deposits and those who invest in our Bank,” Hirst adds.

In addition, ANZ Bank has lifted variable rates for investors by 0.08% to 5.60% per annum. Variable rates for owner-occupiers remain unchanged.

“Despite residential investor rates remaining at historic low levels, this was a difficult decision that took into account increases in our funding costs and our regulatory obligation to manage a balanced portfolio,” says ANZ group executive Australia Fred Ohlsson.

“There are no changes to our variable rates for owner-occupier home loans. Customers concerned about the long-term direction of interest rates are able to take advantage of our competitive fixed rates that remain unchanged for both investors and owner-occupiers.”

Published on: Monday, December 12, 2016

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