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A non-major lender has announced that the variable interest rate for business loans will rise by 10 basis points, effective immediately.
From today, Auswide Bank's variable rate for business loans will increase by 10 basis points to 5.28 per cent (standard variable).
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As well as the rise in business loans, existing owner-occupied home loans will also increase by 10 basis points, bringing the predominant standard variable rate to 5.45 per cent per annum (comparison rate 5.58 per cent).
Customers with fixed-rate home loans, RBA Rate Tracker home loans, personal lines of credit and investment home loans are not impacted by the increase. The bank’s current discount variable rate offer for new package loans over $150,000 with an LVR under 90 per cent is also not impacted.
The managing director of the bank, Martin Barrett, said that the bank had held off "for as long as possible" on increasing loan rates for owner-occupiers and business customers since adjusting pricing on investment home loan rates in December.
However, he stated that the rise was now “necessary” to “protect the interests of all stakeholders”.
Mr Barrett commented: “Our operating margin has sat just under 2 per cent for many years and this decision protects that long-held position in a competitive funding environment where a large proportion of our loan funding is sourced from depositors.”
[Related: Non-major cuts rates for owner-occupiers and investors]
