Another non-major bank will increase its standard variable interest rates on residential property loans.
ING DIRECT announced that effective from today, standard variable rates will be lifted 15 basis points for both owner-occupier and investor borrowers.
The Orange Advantage home loan for owner-occupiers moves to 4.80 per cent. The Mortgage Simplifier home loan for owner-occupiers will be 4.70 per cent.
The highest variable interest rate for the Savings Maximiser will increase by 0.25 of a percentage point to 3.00 per cent. The top tier Savings Accelerator rate will increase by 0.45 of a percentage point to 2.35 per cent.
ING DIRECT's announcement follows fellow non-major lender Suncorp Bank's decision to lift variable mortgage rates for property investors by 15 basis points.
Suncorp Banking and Wealth acting CEO Steve Kluss said the decision to increase investor rates was based on numerous factors including continuing to deliver value to customers through offering competitive rates.
“It’s important to understand that most of our existing investor home loan customers are paying rates well below the headline 5.87 per cent standard variable rate for investor loans as a result of our products’ various features and benefits,” Mr Kluss said.
“Financial markets have witnessed some significant moves since the US election, particularly within global bond, currency and commodity markets.
“Bond rates have drifted higher since their record lows from the middle of the year and funding markets in Australia have also become more expensive due to a number of factors, including regulatory reforms.
“Bank funding is driven more by changes in bond rates than cash rates, which has put pressure on costs for variable home loans.
“The decision to increase rates for investor loans was taken to balance the needs of all our stakeholders including borrowers, savers, shareholders and regulators.”
Suncorp’s rates for owner-occupied loans and small business lending remain unchanged.
[Related: Rate hikes a 'money grab', says CEO]
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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