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A Westpac spokesperson told Mortgage Business that the major has increased interest rates for its commercial loans by 23 basis points, while its small business loan interest rates have risen by 19 basis points.
The spokesperson said that lending activity for Westpac’s commercial and business banking division has experienced heightened competition and increased funding costs, which has impacted returns for the bank.
“While we have been disciplined in managing our margins, over the long term all businesses must deliver sustainable returns,” the spokesperson said.
Furthermore, Westpac has made available two new fixed-rate offers on its business loans, with the bank’s three-year rate now at 3.99 per cent, while its five-year rate is now at 4.99 per cent.
Westpac’s pricing changes come after ANZ announced rate increases on a number of their business lending products.
[Related: Owner-occupied rates drop 30 basis points]