More lenders hike variable rates

by Julia Corderoy03 Nov 2015
Non-major lenders AMP and Suncorp are the latest lenders to join the variable home loan rate hikes.

AMP Bank has announced it will increase rates on its variable owner occupied loans by 18 basis points, effective 20 November. The non-major has also stated it will remain “committed” to recommencing investor property lending in 2015.

In addition, AMP announced the bonus rate on the AMP Saver account for new accounts will be increased by 20 basis points to 3.05%, also effective 20 November. 

Meanwhile, Suncorp Bank announced it will increase its owner occupier and investor variable interest rates by 16 basis points. These changes will apply to both new and existing loans effective 20 November 2015. 

These changes will bring Suncorp Bank’s standard variable owner occupier rate to 5.70% and its investment standard variable rate to 5.97%.

Suncorp Bank head of intermediaries, Steven Degetto, said the changes reflected the lender’s commitment to balancing the impact of interest rate increases on customers with its competitive positon in the market.  

“Today’s interest rate change wasn’t a decision taken lightly. We balanced a range of considerations including the impact on the cost of living on customers, as well as an increase in the Bank’s wholesale funding costs and competitive positioning,” he said. 

However, Suncorp Bank’s small business lending rates remain unchanged.