Bankwest is lifting mortgage rates for interest-only loans, following the lead from the big four banks that already adjusted rates in an attempt to slow down riskier lending.
The Commonwealth Bank-owned lender will from Tuesday increase new interest-only owner occupier home loans by 0.05 per cent, while dropping new principal and interest investor home loans by 0.15 per cent.
It will also, from October, lift existing interest-only rates for both owner-occupiers and investor home loans by 0.35 per cent and 0.25 per cent respectively.
Bankwest general manager products and pricing Paul Vivian said the lender aims to balance out the needs of customers, shareholders and regulators.
"The changes are being made in line with regulatory guidance and customers can consider moving to our lower principal and interest rates so they pay less interest over the life of their home loan," Mr Vivian said.
Bankwest's owner-occupied interest-only home loans will rise to 4.34 per cent and its premium select home loan will increase to 4.44 per cent.
However, its investor principal and interest home loans will drop to 4.89 per cent, down from 5.04 per cent.
Like its rivals, Bankwest said the changes were not in response to the federal government's bank levy or the new capital benchmark requirements announced by APRA.
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