Bendigo Bank is the latest lender to increase interest rates for home loan customers, blaming higher funding costs for a round of rate rises of between 0.1 and 0.16 percentage points.
Bendigo and Adelaide Bank says it will raise rates on owner-occupier loans to customers paying principal and interest by 0.1 percentage points. Rates for property investors will rise by the same amount, while owner-occupiers who have interest-only mortgages face a larger 0.16 percentage point increase.
Chief executive Marnie Baker said the interest rate hikes, which will take effect from June 23, had been driven by an increase in bank funding costs over the year.
“Funding costs have been steadily increasing this year, and we’ve absorbed this cost impact to date. Today’s adjustment to the variable interest rates will assist in balancing this funding cost increase,” Ms Baker said.
The bank said its hike would raise repayments on a $250,000 home loan by $15.71 a month.
