The Commonwealth Bank, citing rising cost of funds, has joined Westpac and NAB is raising interest rates for owner-occupier home loans.
The ANZ today kept its standard variable rate for owner-occupiers steady, only increasing the rate for interest only loans.
The Commonwealth later today announced that the standard variable rate for owner-occupier home loan customers repaying principal and interest will increase 3 basis points to 5.25%.
Commonwealth says this rate is the equal lowest standard variable rate among the major banks.
The bank also raised the standard variable rate for interest only owner-occupier home loansby 25 basis points to 5.47%.
And the standard variable rate for principal and interest investment home loans will increase by 24 basis points to 5.80%.
Interest only investment home loans will rise by 26 basis points to 5.94%.
“Rising costs and regulatory responsibilities mean we are increasing home loan interest rates,” says Matt Comyn, Group Executive for Retail Banking Services.
“We have sought to minimise the impact for the majority of our home loan customers who are Australian families trying to pay off their home.
“These changes don’t come into effect until 8 May, giving people enough time to speak to one of our home lending specialists to review their current repayments.”
The new rates are effective from May 8.