Following the RBA’s decision to leave rates on hold today, an Australian bank has announced it will increase its variable home loan rates by up to 0.17 per cent.
Adelaide Bank announced the following increases to its standard variable interest rate as follows, effective Friday, 20 November:
• 0.07 per cent to 4.21 per cent for Smart Saver loans
• 0.12 per cent to 4.26 per cent for SmartFit loans
• 0.12 per cent to 4.66 per cent for Smart Saver investor loans
• 0.17 per cent to 4.71 per cent for SmartFit investor loans
Bendigo and Adelaide Bank managing director Mike Hirst said the decision to adjust rates takes into account a wide range of factors, including the needs of all stakeholders, maintaining competitive pricing and capital requirements.
“Our bank regularly reviews our pricing, and the needs of borrowers, depositors, shareholders, partners and the wider community remain front of mind,” Mr Hirst said.
“We’re pleased that the government has supported most of the recommendations of the Financial System Inquiry, and while these measures will go some way to levelling the playing field, the fact remains our bank is still required to hold significantly more capital than the major banks.
“Adjusting the interest rate reflects our need to generate a reasonable return given we are competing against the major banks to attract capital to grow.
“We believe the pricing we set for Adelaide Bank will continue to provide great value, [and] highly functional home loan products while remaining market competitive.”