Commonwealth Bank has today announced an increase in its Standard Variable Rate investor home loan interest rates by 0.07%, to 5.56% per annum, and an increase in the Viridian Line of Credit interest rate by 0.15%, to 5.78% per annum. So, all the majors have now lifted rates.
These changes are effective from Friday, 16 December 2016.
We have carefully considered the current environment when making this decision – in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10 per cent investor home loan growth cap. We believe these changes balance the needs of our borrowers and shareholders, while helping to underpin the long-term sustainability of the Australian home loan market.
The Owner Occupied Standard Variable Rate remains unchanged at a historical low of 5.22% p.a.
They have also introduced new reference rates and products for customers making interest only repayments to more accurately differentiate this repayment option.
