Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Non-major bank lifts business loan rates
Powered by MOMENTUM MEDIA

Website Notifications

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

sme logo

Non-major bank lifts business loan rates

up up
Reporter 1 minute read

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).

Advertisement
Advertisement

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]

Non-major bank lifts business loan rates
up
TheAdviser logo
up
FROM THE WEB
more from the adviser
handshake 1 850 Asset finance lender acquired for $260m

Equipment finance lender Axsesstoday, which had been placed into ...

StephenMoore850 Brokers encouraged to seize data opportunities

Head of Choice Aggregation Stephen Moore has encouraged brokers t...

megaphone crowd ta Brokers have their say on serviceability changes

Several leading brokers have suggested that APRA’s recent chang...