One of Australia’s biggest challenger banks has followed the big four by increasing its variable home loan rates.
St. George announced late on Friday that it will increase the interest rates for standard variable home loans in an effort to partially offset the cost of fulfilling changed regulatory requirements that will increase the amount of capital that needs to be held against mortgages.
St. George standard variable rate home loans for owner-occupiers will increase by 15 basis points to 5.69 per cent (comparison rate 5.85 per cent).
St. George standard variable rate investment loans will increase by 15 basis points to 5.94 per cent (comparison rate 6.10 per cent).
The new rates will come into effect on 20 November 2015.
Fixed rates have not been changed, with the current two-year Advantage Package fixed rate for owner occupiers remaining at 4.19 per cent (comparison rate 5.27 per cent) and for residential investment home loans at 4.44 per cent (comparison rate 5.51 per cent).