A major bank subsidiary has increased the variable interest rate on owner-occupier home loans by 76 basis points.
Effective Friday, 2 June 2017, changes will apply to Bankwest's lending for loans above 95 per cent LVR. The new variable rate for these loans will be 5.29 per cent (5.69 per cent comparison), up from 4.53 per cent.
Existing lending will not be affected by the changes.
Commenting on the change, the bank said: "Bankwest takes a balanced approach to product and pricing changes, and we are mindful of our broader obligations as a responsible lender.
"Bankwest reviews its products and pricing on an ongoing basis with the aim of balancing the needs of our customers, shareholders, regulators and the community."
Further, the existing above 90 per cent LVR tier for owner-occupiers will change to 90.01 to 95 per cent LVR including LMI. Rates for these tiers remain unchanged.
New lending on the bank's Regular Saver Home Loan will be capped at 95 per cent LVR including LMI.
[Related: Mutuals the latest to hike interest rates]
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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.