CBA has announced an increase in its variable home loan rates by 15 basis points, citing the rise will partially offset costs associated with recent changes to capital requirements. However, the major banks has said fixed rates and business rates remain unchanged.
“The Commonwealth Bank is supportive of an Australian financial system that is strong, stable and competitive. We recently raised $5.1 billion to strengthen our capital position in line with new regulatory requirements implemented in response to the Financial System Inquiry. We have now reviewed our home loan pricing in light of these changes," Matt Comyn, CBA's group executive for retail banking services said.
“As Australia’s largest home lender, we are committed to delivering competitive products and services to our customers, while maintaining an unquestionably strong capital position.
“Any decision to change interest rates is carefully considered. The cost of the new capital required to make the Australian banking system more secure needs to balance the interests of our customers, as well as the nearly 800,000 households who are direct shareholders and the millions more who are invested through their superannuation funds.”
For owner occupiers, the standard variable home loan rate will increase to 5.60% per annum. For investment home loan standard variable rate customers, interest rates will rise to 5.87% per annum. The new rates will be effective from 20 November 2015.
CBA's rate decision comes after
Westpac announced it was increasing its standard variable residential home loan rates for both owner occupiers and investors by 20 basis points last week.
