Commonwealth Bank increased its standard variable investor home loan interest rates by 7 basis points to 5.56%.
It also increase its line of credit interest rates by 15 basis points to 5.78%.
The latest rise doesn’t include variable owner occupier mortgage rates. Bendigo Bank last week increased its owner occupier mortgage variable interest rate by 10 basis points to 5.48%, citing high costs of funds.
The Commonwealth Bank says its owner occupier standard variable rate remains at 5.22%. Business rates also remain unchanged.
The ANZ last week increased its variable loan for property investors by 8 basis points to 5.6%.
“We have carefully considered the current environment when making this decision — in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10% investor home loan growth cap,” says Matt Comyn, group executive for retail banking services.
“We believe these changes balance the needs of our borrowers and shareholders, while helping to underpin the long-term sustainability of the Australian home loan market.”
The new rates are effective from Friday.
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