Bendigo Bank has announced it will increase its residential investment standard variable interest rate by 20 basis points to address recent industry-wide concerns regarding residential investment lending.
The bank said its residential investment package variable rate will also increase by 20 basis points for new business and most existing investor variable rate loans.
Bendigo and Adelaide Bank managing director Mike Hirst said implementing this measure supports the lender’s prudent management by appropriately pricing for risk, and assists in restraining investor mortgage book growth to less than 10 per cent per annum as required by APRA.
“When it comes to setting interest rates, our bank takes into account a wide range of factors and carefully considers its key stakeholders including borrowers, depositors, staff, shareholders, partners and the wider community,” Mr Hirst said.
“We believe this approach considers the needs of our stakeholders while continuing to provide customers with market competitive rates."
The adjustment is effective 1 September for new business and 1 October for existing residential investment loans.
[Related: Top broker sees impact of market changes]
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