Major bank increases investor interest only rates

by Madelin Tomelty15 Feb 2017

CBA has announced that interest only home loan rates for investors will rise by 12 basis points and Viridian Line of Credit (VLOC) products will increase by 4 basis points. The new interest only standard variable rate for investors will be 5.68% per annum, VLOC will move to 5.82% per annum.

These changes will be effective from 3 April. 
"CBA supported 140,000 new home loans in the six months ended December 2016 and our standard variable rate (SVR) for owner occupiers of 5.22% per annum remains the lowest among the major banks," the bank said in its announcement.

The rate change comes along with the announcement of the bank's half year results, in which it reported having lifted its cash net profit by 2% to 4.91bn.