Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

CBA lifts interest-only rates

cba    cba
Staff reporter 5 minute read

The major bank has followed its peers by announcing rate increases across its interest-only home loans.

CBA this week revealed that Standard Owner-Occupied Interest-Only home loans will increase 30 basis points to 5.77 per cent and Standard Investor Interest-Only will increase by the same amount to 6.24 per cent.

The bank has reduced Standard Owner-Occupied Principal and Interest loans by 3 basis points.

“Commonwealth Bank recognises the importance of ensuring borrowers can sustain a strong path to property ownership and will be reducing our owner-occupier standard variable rate for those repaying principal and interest,” the group said.

Advertisement
Advertisement

“We are supportive of the banking regulator’s moves to manage the level of growth and resiliency in the housing market. To meet our regulatory requirements, variable interest-only home loan rates for owner-occupiers and investors will increase by 30 basis points.”

CBA’s group executive of retail banking services, Matt Comyn, said: “Paying off your home is important for Australians. For owner-occupier customers repaying principal and interest, they can take advantage of the interest rate reduction to pay off their home loan faster. These changes also help us keep the right balance in our home loan portfolio, in line with what our regulators require.”

CBA encouraged customers who currently make interest-only payments to switch to principal and interest repayments: "Customers who currently make interest only payments are encouraged, where they are able, to switch to principal and interest repayments.

“Switching is easy and attracts no fees. Customers can make the change at no cost online, over the phone, or by speaking with a home lending specialist in branch,” the bank said.

“These interest-only changes are not in response to the bank levy that was announced as part of the federal budget in May.”

PROMOTED CONTENT


The new rates will be effective from 7 July 2017.

CBA lifts interest-only rates
cba
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

cba
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.

 

 

more from the adviser
AFG office AFG-Connective merger unlikely to complete

The aggregator has flagged that delays from the courts in deliver...

money grants Fintech calls for SME Recovery Loan Scheme extension

The non-bank lender is calling on government to extend its SME Re...

boardroom BOQ reshuffles board following ME Bank acquisition

Following the completion of its acquisition of ME Bank, BOQ Group...