Commonwealth Bank increases home loan interest rates

Font size :
The Commonwealth Bank has followed in the footsteps of Westpac in announcing that interest rates will rise on some of its home loans for both investors and owner-occupiers. 

Commonwealth Bank yesterday announced that it will increase the standard variable interest rate for home owners and investors by 0.15%. 

The increase means that from 20 November, owner-occupiers will face a standard variable interest rate of 5.60% per annum, while investors with a standard variable rate mortgage will see their interest rate move to 5.87% per annum. 

Fixed-rate home loan and business loan custtomers will be spared however, with the bank not applying the increase to those loans. 

The Commonwelath Bank's rate rise is smaller than Westpac's 0.2% increase, and Commonwealth Bank  Group Executive for Retail Banking Services Matt Comyn said that was a result of the bank trying to stay competitive while also meeting regulatory requirements. 

"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," Comyn said.

"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," he said. 

While the bank said the rise was necessary, Comyn said the bank had delberated carefully on how to proceed. 

"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.”

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

CBA unveils new repayment simulator CBA unveils new repayment simulator

The simulator will show customers the differences between different types of repayments Read more

How to tell when a housing market is cooling How to tell when a housing market is cooling You need to check clearance rates, listings, and the price gap, among other factors ... Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Sep 26, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords