All four major banks have decided to hike their variable rate home loans after Australia’s biggest bank announced changes this afternoon.
Commonwealth Bank today announced that its standard variable rate for interest only investment home loans will increase by 26 basis points to 5.94 per cent per annum. The SVR for principal and interest investment loans will increase by 24 basis points to 5.80 per cent per annum.
CBA’s standard variable rate for owner-occupier home loan customers repaying principal and interest will increase 3 basis points to 5.25 per cent per annum. Owner-occupiers on an interest-only mortgage will see their SVR increase 25 basis points to 5.47 per cent.
The standard variable rate for interest only owner-occupier home loans will increase by 25 basis points to 5.47 per cent per annum.
“Rising costs and regulatory responsibilities mean we are increasing home loan interest rates. We have sought to minimise the impact for the majority of our home loan customers who are Australian families trying to pay off their home,” CBA group executive for retail banking services Matt Comyn said.
“These changes don’t come into effect until 8 May, giving people enough time to speak to one of our home lending specialists to review their current repayments,” he said.
“We encourage customers to switch to principal and interest, where this meets their needs, so that they can continue to enjoy historically low rates.
“Customers can switch repayments at no cost, simply and easily online or over the phone. Or they can speak with one of our home lending specialists.”
These new rates are effective from 8 May 2017.