Powered by MOMENTUM MEDIA
subscribe to our newsletter

Adelaide Bank hikes rates on investor and owner-occupied loans

A regional bank has hit investors with a bigger rate hike than its owner-occupier customers in a round of fresh pricing changes.

Adelaide Bank announced the following increases to its standard variable interest rate as follows, effective Friday 20 November:

• 0.07 per cent to 4.21 per cent for Smart Saver loans
• 0.12 per cent to 4.26 per cent for SmartFit loans
• 0.12 per cent to 4.66 per cent for Smart Saver investor loans 
• 0.17 per cent to 4.71 per cent for SmartFit investor loans

Bendigo and Adelaide Bank managing director Mike Hirst said the decision to adjust rates takes into account a wide range of factors, including the needs of all stakeholders, maintaining competitive pricing and capital requirements.

“Our bank regularly reviews our pricing, and the needs of borrowers, depositors, shareholders, partners and the wider community remain front of mind,” Mr Hirst said.

Advertisement
Advertisement

“We’re pleased that the government has supported most of the recommendations of the Financial System Inquiry, and while these measures will go some way to levelling the playing field, the fact remains our bank is still required to hold significantly more capital than the major banks.

“Adjusting the interest rate reflects our need to generate a reasonable return given we are competing against the major banks to attract capital to grow.

“We believe the pricing we set for Adelaide Bank will continue to provide great value, [and] highly functional home loan products while remaining market competitive.”

Meanwhile, Bendigo Bank announced that its owner-occupied variable home loan rates would go up by 12 basis points to 5.68 per cent, and its investor rates will increase by 15 basis points to 5.91 per cent.

Adelaide Bank hikes rates on investor and owner-occupied loans

PROMOTED CONTENT


>Adelaide Bank announced the following increases to its standard variable interest rate as follows, effective Friday 20 November:

• 0.07 per cent to 4.21 per cent for Smart Saver loans
• 0.12 per cent to 4.26 per cent for SmartFit loans
• 0.12 per cent to 4.66 per cent for Smart Saver investor loans 
• 0.17 per cent to 4.71 per cent for SmartFit investor loans

Bendigo and Adelaide Bank managing director Mike Hirst said the decision to adjust rates takes into account a wide range of factors, including the needs of all stakeholders, maintaining competitive pricing and capital requirements.

“Our bank regularly reviews our pricing, and the needs of borrowers, depositors, shareholders, partners and the wider community remain front of mind,” Mr Hirst said.

“We’re pleased that the government has supported most of the recommendations of the Financial System Inquiry, and while these measures will go some way to levelling the playing field, the fact remains our bank is still required to hold significantly more capital than the major banks.

“Adjusting the interest rate reflects our need to generate a reasonable return given we are competing against the major banks to attract capital to grow.

“We believe the pricing we set for Adelaide Bank will continue to provide great value, [and] highly functional home loan products while remaining market competitive.”

Meanwhile, Bendigo Bank announced that its owner-occupied variable home loan rates would go up by 12 basis points to 5.68 per cent, and its investor rates will increase by 15 basis points to 5.91 per cent.

Adelaide Bank hikes rates on investor and owner-occupied loans
mortgagebusiness

Latest News

The percentage of young adults looking to pay down their home loans has risen over the past five months, according to new data. ...

Despite the Reserve Bank digging its heels in on the timing of its cash rate climb, Westpac economists have predicted the right conditions w...

Customer-owned banks operate around four branches per $1 billion in assets, while the big four collectively run less than one shopfront per ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

When do you expect the cash rate to start increasing?

Website Notifications

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