Lenders follow rate hike moves by majors

by Julia Corderoy26 Oct 2015
Non-major lender Macquarie Bank and major bank subsidiary St George have become the latest lenders to announce variable interest rate hikes, following the major banks. 

In communication sent to mortgage brokers obtained by Australian Broker, Macquarie Bank announced it will increase its variable home loan rates for all products by 20 basis points “in response to market conditions”. Effective 20 November, the standard variable rate for owner-occupied loans will rise to 5.70% and the investment variable rate will increase to 5.97% for investment loans.

St George announced it would be increasing its variable rate home loans by 15 basis points, also effective 20 November. The standard variable rate for owner-occupied loans will be increased to 5.69%, while the standard variable rate for investment loan will be increased to 5.94%. 

In the communication to brokers obtained by Australian Broker, St George said the rate hikes “will partially offset the cost of fulfilling changed regulatory requirements that will increase the amount of capital that needs to be held against mortgages.”
 

COMMENTS

  • by Regional Broker 26/10/2015 9:21:58 AM

    St George is a subsidiary of Westpac what else did we expect?
    As for Macquarie all their book is securitised, very little excuse for them except if the bond issuers are looking for better return, why not say that, or is another gouging effort?

  • by MCC 26/10/2015 9:27:41 AM

    Internal mortgage book risk rating assessment - no more to be said.