Commonwealth Bank increases variable home loan rates.
- The standard variable rate for owner-occupier home loan customers repaying principal and interest will increase 3 basis points to 5.25 per cent per annum.
This rate remains the equal lowest standard variable rate among the major banks for owner occupiers repaying principal and interest.
- The standard variable rate for interest only owner-occupier home loans will increase by 25 basis points to 5.47 per cent per annum.
- The standard variable rate for principal and interest investment home loans will increase by 24 basis points to 5.80 per cent per annum.
- The standard variable rate for interest only investment home loans will increase by 26 basis points to 5.94 per cent per annum.
Matt Comyn, group executive for retail Banking Services, said: “Rising costs and regulatory responsibilities mean we are increasing home loan interest rates. 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. We encourage customers to switch to principal and interest, where this meets their needs, so that they can continue to enjoy historically low rates.
“Customers can switch repayments at no cost, simply and easily online or over the phone. Or they can speak with one of our home lending specialists,” Mr Comyn said.
These new rates are effective from 8 May 2017.
- 77 per cent of customers are ahead on their mortgage repayments by 2.9 years on average, including offset facilities.*
- Mortgage offset balances are up 19 per cent in the first half of the financial year.
- Since March 2015, the standard variable rate for owner-occupier home loan customers repaying principal and interest has decreased by 40 basis points saving customers $88 per month or $1,051 per year.
*Current at 31 December 2016