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The Commonwealth bank of Australia will no longer give their brokers prior warning about changes to their fixed interest rates.
In a statement to their broker channel, the bank said they would inform their brokers about any fluctuations in fixed interest rates on the effective day of change.
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“We aim to provide our customers with the most competitive rates possible. This means that we make the decision to increase fixed rates only once our own costs of funds have already risen,” CBA said in a statement.
“Under the current practice, we are experiencing a spike in the volume of requests to switch to fixed rates or to rate lock a loan application in the period between notifying of a fixed interest rate change and the effective date of the change. This volume of business is often written at unsustainable margins due to the increased cost of funds.”
According to the Bank, mortgage services will process all rate lock and switching requests at the rate effective on the day when the request is received.
