Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
Major bank lifts fixed interest rates

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.

Advertisement
Advertisement

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.

"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

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 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.

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

 

Latest News

The Federal Court’s decision to dismiss ASIC’s responsible lending case against Westpac could lead to an overhaul of credit practices in...

Treasurer Josh Frydenberg has withheld his approval for the acquisition of a Queensland-based lender, requesting further details before rubb...

The head of the Australian Banking Association has said that “really strict” serviceability assessments have resulted in poor customer o...

FROM THE WEB
podcast

LATEST PODCAST: Acquisitions and evolution

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?

Website Notifications

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