Commonwealth Bank today announced a 0.25% of a percentage point increase to fixed rate interest-only property loans for owner-occupiers.
Fixed rates for interest-only investment property loans for between two- and five-year terms go up by 0.50% of a percentage point.
The bigger rise for longer term loans confirms the widespread view that interest rates will trend higher over the next few years.
The latest rises follow an increase announced by the Commonwealth last month to standard variable rates for owner-occupiers repaying principal and interest. Those went up 3 basis points to 5.25%.
Today Australia’s biggest home loan lender announced new rates for fixed interest loans effective from today:
Fixed Rate for 1, 2, 3, 4 and 5 Year Interest Only Owner Occupied Home Loans will rise by 0.25%.
Fixed Rate for 2, 3, 4 and 5 Year Principal and Interest Investment Home Loans will increase by 0.25%.
Fixed Rate for 1 Year Interest Only Investment Home Loans rise by 0.25%.
Fixed Rate for our 2, 3, 4, and 5 Year Interest Only Investment Home Loans go up by 0.50%.
Three of the big four banks last month raised rates on standard variable rate home loans for owner-occupiers.
This article has been updated to clarify that the increased rates apply to interest-only owner-occupier loans, rather than owner-occupier loans generally. We are happy to clarify the point.