Powered by MOMENTUM MEDIA
subscribe to our newsletter

Major bank lifts fixed interest rates

A big four bank has announced that it has raised fixed interest rates on investor and interest-only home loans in a bid to meet its regulatory requirements.

Commonwealth Bank has announced that, effective immediately, fixed rates on interest-only loans for owner-occupiers will rise by 25 basis points.

Fixed rates for owner-occupier customers making principal and interest repayments have not changed.

For investors, interest-only loans will rise by between 25 and 50 basis points (depending on term) while investor principal and interest mortgages will rise by 25 basis points.

The bank said: "Commonwealth Bank is increasing home loan fixed interest rates for investment home loans and interest-only customers to ensure we continue to meet our regulatory requirements.

Advertisement
Advertisement

"Home loan customers who already have a fixed rate loan are unaffected by these changes. We continue to offer competitive rates across our products, including the equal lowest owner-occupier standard variable rate among the major banks. 

"We encourage home buyers to speak with one of our home loan specialists so we can provide them with a solution that is best for their circumstances." 

The moves come following new speed limits from APRA and industry surveillance by ASIC into whether lenders and mortgage brokers are “inappropriately recommending more expensive interest-only loans”.

New rates can be found below: 

Fixed Rate Interest-Only Owner-Occupier Home Loans

PROMOTED CONTENT


Product

Change (p.a)

New rate (p.a)

1 year fixed rate

0.25%

4.64%

2 year fixed rate

0.25%

4.24%

3 year fixed rate

0.25%

4.34%

4 year fixed rate

0.25%

4.64%

5 year fixed rate

0.25%

4.84%

     

Fixed Rate Principal and Interest Investment Home Loans

Product

Change (p.a)

New rate (p.a)

2 year fixed rate

0.25%

4.44%

3 year fixed rate

0.25%

4.54%

4 year fixed rate

0.25%

4.84%

5 year fixed rate

0.25%

5.04%

     

Fixed Rate Interest-Only Investment Home Loans

Product

Change (p.a)

New rate (p.a)

1 year fixed rate

0.25%

4.84%

2 year fixed rate

0.50%

4.69%

3 year fixed rate

0.50%

4.79%

4 year fixed rate

0.50%

5.09%

5 year fixed rate

0.50%

5.29%

[Related: Interest-only mortgage glut sparks default risk]

Major bank lifts fixed interest rates
mortgagebusiness

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The RBA has studied the role of collateral in credit markets under stress, and has found that collateralised borrowing rose for some segment...

Auction volumes surged significantly over the December quarter across Australia, largely attributed to a “resurgence” in Melbourne, acco...

Loan conditions and collateral guarantees continue to be major stumbling blocks for small businesses looking to access financing, according ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.