CBA joins ANZ in raising variable home loan interest rates

Commonwealth Bank has followed its rivals in lifting variable mortgage rates and, like Westpac and ANZ, is pleading increased funding costs.

The Commonwealth Bank has announced an 0.15 percentage point increase to its standard variable rate.

The Commonwealth Bank has announced an 0.15 percentage point increase to its standard variable rate. Source: AAP

Commonwealth Bank and ANZ have become the latest major banks to lift their home loan interest rates, with both institutions blaming rising international borrowing costs.

ANZ announced on Thursday that it will hike its standard variable rate by 0.16 percentage points, citing higher funding costs but saying the increase will not apply to drought-affected regional customers.

CBA followed soon after with a 0.15 percentage point increase to its standard variable rate.
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ANZ announced its 0.16 percentage points hike on Thursday. (AAP)
AAP

 

The banks' move follows Westpac announcing a lift in its home loan rate on August 29.

ANZ's higher rates will take effect from September 27, the bank said, and will take its residential principal-and-interest rate to 5.36 per cent.

Commonwealth Bank's increase will take effect on October 4 with the standard rate for owner-occupier borrowers rising to 5.37 per cent a year.

CBA group executive Angus Sullivan said the decision, which was released within minutes of ANZ, came "after careful consideration".

"We are very conscious of the impact that increasing interest rates will have on our customers, however it is important that we price our home loan products in a way that reflects underlying costs," he said.


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Presented by Yang J. Joo
Source: SBS News, AAP

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