Non-major lender Adelaide Bank has announced a range of rate increases across its variable rate home loan products.
Effective Friday 20 November, the standard variable rate for Adelaide Bank’s Smart Saver Loans will rise by 7 basis points to 4.21%. The non-major’s SmartFit and Smart Saver investor loans will both rise by 12 basis points to 4.26% and 4.66%, respectively, while the SmartFit investor loan will increase by 17 basis points to 4.71%.
Bendigo and Adelaide Bank managing director Mike Hirst says the decision to adjust rates takes into account a wide range of factors.
“Our Bank regularly reviews our pricing, and the needs of borrowers, depositors, shareholders, partners and the wider community remain front of mind,” he said.
“We’re pleased that the Government has supported most of the recommendations of the Financial System Inquiry, and while these measures will go some way to levelling the playing field, the fact remains our Bank is still required to hold significantly more capital than the major banks.
“Adjusting the interest rate reflects our need to generate a reasonable return given we are competing against the major banks to attract capital to grow.
“We believe the pricing we set for Adelaide Bank will continue to provide great value, highly functional home loan products while remaining market competitive.”