Almost all of the second tier lenders have followed the lead of CBA, Westpac and ANZ and lifted variable mortgage rates beyond the Reserve Bank’s 25 basis points.
HSBC raised its mortgage variable rate by 35 basis points to 6.24 per cent, according to Canstar Cannex.
ING DIRECT took a similar approach, increasing its variable home loan rate by 35 basis points to 5.94 per cent.
ING DIRECT’s head of public relations, David Breen, said: “ING DIRECT has continued to experience higher funding costs as a result of credit market conditions. Taking these factors into consideration, ING DIRECT has reviewed its variable interest rates.”
AMP also took a conservative approach, increasing its standard variable home loan rate by 30 basis points to 6.69 per cent.
However, not every second tier lender decided to move above the Reserve Bank.
Yesterday, Homeloans become the first lender outside of the big four banks to stay in line with the Reserve Bank, raising its variable mortgage rate by just 25 basis points.
Tony Carn, the mortgage manager’s third-party distribution general manager, said the company was committed to providing a viable and competitive alternative to the major banks.