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Big four bank lifts variable rates

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Big four bank lifts variable rates

James Mitchell 2 minute read

Another big four bank has lifted its variable home loan rates a week after Westpac's shock decision.

CBA yesterday announced that its Standard Variable Rate will increase by 15 basis points, to 5.60 per cent for owner-occupied home loans.

The bank's Investment Home Loan Standard Variable Rate will also increase by 15 basis points to 5.87 per cent.

Fixed rates have not been changed, with the current Owner-Occupier Wealth Package two-year fixed rate remaining at 4.29 per cent per annum.

In a statement, the lender said the 15-basis-point rate rise will partially offset costs associated with recent changes to capital requirements.

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Matt Comyn, group executive for retail banking services, said CBA is supportive of an Australian financial system that is strong, stable and competitive.

"We recently raised $5.1 billion to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry. We have now reviewed our home loan pricing in light of these changes.

“As Australia’s largest home lender, we are committed to delivering competitive products and services to our customers, while maintaining an unquestionably strong capital position. 

“Any decision to change interest rates is carefully considered. The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers, as well as the nearly 800,000 households who are direct shareholders and the millions more who are invested through their superannuation funds," Mr Comyn said.

[Related: Westpac hikes variable rates]

Big four bank lifts variable rates
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James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

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