Broker News

Fourth major bank increases rates

The CBA is the final major bank to lift interest rates, following in the footsteps of Westpac, NAB and ANZ.

CBA announced it will lift standard variable investor home loan rates by a 0.07% to 5.56% per annum, and the Viridian Line of Credit interest rates by 0.15% to 5.78% per annum, effective 16 December 2016.

“We have carefully considered the current environment when making this decision – in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10% investor home loan growth cap,” says Matt Comyn, group executive for retail banking services.

“We believe these changes balance the needs of our borrowers and shareholders, while helping to underpin the long-term sustainability of the Australian home loan market.”

Comyn highlights the CBA continues to offer competitive rates, including “the lowest owner-occupier standard variable rate among the major banks”.

 

Published on: Tuesday, December 13, 2016

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