Effective from today, ING has raised its variable rates for existing home owners.
Owner occupier home loan customers will see a 0.10% increase, despite the cash rate holding and predictions for a further hold today (3 July).
A spokesperson for the bank said, “The nature of a variable rate is that it is subject to change. We review our rates regularly and occasionally we need to increase them to ensure we can adjust to market changes while continuing to be best placed to provide our customers with simple, effective banking products.”
ING is not the only bank to have amended its interest rate over the last couple of weeks. Most recently, Bank of Queensland, IMB and Auswide bank have all changed their rates, with all blaming increased funding costs.
Auswide increased its owner occupied home loans by 0.05% and investment home loans by 0.13%. Managing director at the bank, Martin Barrett, said the decision was made following recent increases in the bank’s funding costs.
He added, “Despite no increase in the official cash rate, we’ve had to make this difficult decision due to a sustained increase in 30 and 90 day BBSW levels. We are now paying significantly more for funding than we were 6 months ago which this increase will help offset.”
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