From today, Auswide Bank's reference rates for existing owner-occupied home loans will increase by 10 basis points, bringing the predominant standard variable rate to 5.45 per cent per annum (comparison rate 5.58 per cent).
This means that customers with an owner-occupied loan paying the standard variable rate on a $250,000 loan will see their repayments increase by $15.59 a month (principal and interest home loan over 30 years).
Customers with fixed-rate home loans, RBA Rate Tracker home loans, personal lines of credit and investment home loans are not impacted by the increase. The bank’s current discount variable rate offer for new package loans over $150,000 with an LVR under 90 per cent is also not impacted.
However, variable rate business loans will also increase by 10 basis points to 5.28 per cent (standard variable).
The managing director of the bank, Martin Barrett, said that the bank had held off "for as long as possible" on increasing loan rates for owner-occupiers and business customers since adjusting pricing on investment home loan rates in December.
However, he stated that the rise was now “necessary” to “protect the interests of all stakeholders”.
Mr Barrett commented: “Our operating margin has sat just under 2 per cent for many years and this decision protects that long-held position in a competitive funding environment where a large proportion of our loan funding is sourced from depositors.”
Annie Kane is the editor of Mortgage Business.
As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also a regular contributor to the Mortgage Business Uncut podcast.
Before joining Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.