Commonwealth Bank increases standard mortgage interest rate by 0.15 points | Interest rate

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The Commonwealth Bank is raising its standard variable interest rates on home loans by 0.15 percentage points.

The ABC Standard Variable Home Loan Rate is now 5.6%. The price increase will apply from November 20.

The CBA is also raising variable rates on its mortgage loans to investors by 0.15 percentage point to 5.87%.

The hikes come in response to new requirements for banks to hold more capital to absorb any losses and make their operations safer.

“We recently raised $ 5.1 billion to strengthen our capital in line with new regulatory requirements implemented in response to the Financial System Inquiry,” said Matt Comyn, CBA Group Director of Retail Banking . “We have now reviewed the pricing of our home loans in light of these changes. “

ABC fixed rates and business loan rates are not affected.

The move follows Westpac’s decision last week to raise mortgage rates for homeowners and investors by 0.2 percentage points to bolster its mortgage portfolio.

In August, ANZ announced a $ 3 billion fundraiser and CBA opted for $ 5 billion. NAB raised $ 5.5 billion in May. In total, the big four banks raised more than $ 20 billion in 2015.

Each has also raised lending rates for real estate investors, but Westpac and CBA have been the first to increase homeowner lending for some time.

Shadow Assistant Treasurer Andrew Leigh said he was surprised by the move.

“My advice to clients who are troubled by this… take advantage of Labor’s abolition of mortgage exit fees and shop around and see if you can get a better deal,” Dr Leigh said.


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