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A major bank has announced that it has raised fixed interest rates on investor and interest-only home loans in a bid to meet its regulatory requirements.
Commonwealth Bank announced on Friday (21 April) that interest-only loans for investors have risen by up to 50 basis points (depending on term) while investor principal and interest mortgages have risen by 25 basis points.
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Fixed rates on interest-only loans for owner-occupiers have risen by 25 basis points but the bank emphasised that owner-occupier customers making principal and interest repayments have not changed.
The bank said: "Commonwealth Bank is increasing home loan fixed interest rates for investment home loans and interest-only customers to ensure we continue to meet our regulatory requirements.
"Home loan customers who already have a fixed rate loan are unaffected by these changes. We continue to offer competitive rates across our products, including the equal lowest owner-occupier standard variable rate among the major banks.
"We encourage home buyers to speak with one of our home loan specialists so we can provide them with a solution that is best for their circumstances."
The move follows on from new speed limits from APRA and industry surveillance by ASIC into whether lenders and mortgage brokers are “inappropriately recommending more expensive interest-only loans”.
The new rates can be found below:
