subscribe to our newsletter
Lender raises rates by 76bps

Lender raises rates by 76bps

A non-major bank has increased the variable interest rate on owner-occupier home loans by 76 basis points, effective immediately.

Effective Friday, 2 June 2017, changes will apply to Bankwest's lending for loans above 95 per cent LVR. The new variable rate for these loans will be 5.29 per cent (5.69 per cent comparison), up from 4.53 per cent.

Existing lending will not be affected by the changes.

Commenting on the change, the bank said: "Bankwest takes a balanced approach to product and pricing changes, and we are mindful of our broader obligations as a responsible lender.

"Bankwest reviews its products and pricing on an ongoing basis with the aim of balancing the needs of our customers, shareholders, regulators and the community."

Further, the existing above 90 per cent LVR tier for owner-occupiers will change to 90.01 to 95 per cent LVR including LMI. Rates for these tiers remain unchanged.

New lending on the bank's Regular Saver Home Loan will be capped at 95 per cent LVR including LMI.    

 

*This article was updated at 2:21pm on 2/6/2017 to clarify that the changes will not affect existing loans

 

Lender raises rates by 76bps
mortgagebusiness logo

Latest News

The ASX has begun calculating the Bank Bill Swap Rate (BBSW) using a new methodology that puts a greater emphasis on trade activity. ...

The major bank’s approval of a $160,000 business loan guaranteed by an elderly blind woman has been grilled by the royal commission. ...

A key witness in the Hayne royal commission has revealed that loan guarantors have been victims of abuse, elder abuse, familial abuse and co...

Promoted Stories

podcast

LATEST PODCAST: Macquarie merger, WA property tax and AMP staff haemorrhage

Do you expect access to credit to get harder this year?