This article is from the Australian Property Journal archive
COMMONWEALTH Bank has increased its variable home loan interest rates by 0.14%.
The Bank’s group executive of retail banking services Ross McEwan said the increase was a result of the continued increasing cost of funds that it is experiencing.
He said funding costs remain very high, with the cost of funding more than 1% (100bp), excluding any increases by the Reserve Bank, above the levels that were being experienced pre August 2007.
“The Bank continues to balance the needs of its shareholders and customers by not passing on the full impact of the increased funding costs to borrowers and as a result has seen the margins on its home loan business decline significantly in the last year,” he concluded.
This now means that the Bank’s standard variable rate home loan will increase from 9.44% pa to 9.58% pa and its basic variable home loan from 8.93% pa to 9.07% pa.
Variable interest rates on some business loans will also increase by 0.15% pa.
Australian Property Journal
