Commonwealth Bank of Australia (CBA) is once again lifting mortgage rates for investor and interest-only loans as lenders continue to tweak their pricing to stay in line with the latest regulatory restrictions.
The following changes went into effect Friday:
- Fixed rates for owner-occupier home loan customers making interest-only repayments are increasing by 25 basis points
- Fixed rates for investment home loan customers making interest-only repayments will increase by 50 basis points for between two- to five-year terms
- One-year fixed rates for investment home loan customers seeking to make interest-only repayments will increase by 25 basis points
- Two- to five-year fixed rates for investment home loan customers making principal and interest repayments will increase by 25 basis points
Home loan customers who already have a fixed-rate loan will be unaffected by these changes.
“Commonwealth Bank is increasing home loan fixed interest rates for investment home loans and interest-only customers to ensure we continue to meet our regulatory requirements,” the bank said in a statement.
CBA said it would continue to offer competitive rates across its products, including the equal lowest owner-occupier Standard Variable rate among the major banks. Home buyers who want to make principal and interest repayments, and live in their property, will likewise not be affected.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan