This article is from the Australian Property Journal archive
THE Commonwealth Bank has raised its standard variable home loan rate by 35 basis points.
The increase is 10 points higher than last week’s official cash rate rise. As a result, CBA’s standard variable home loan rate will rise to 9.32% from 8.97%.
CBA’s retail chief Ross McEwan said the bank could no longer absorb the increased cost of its own borrowings.
“The Commonwealth Bank has absorbed a significant proportion of the increased funding costs that it has experienced since August 2007.
“Unfortunately, the volatility in global markets remains and we have seen funding costs continue to increase, particularly since February as funding from global markets has become tighter and as a result more costly,” he added.
In addition to the CBA, Westpac has raised its standard variable home loan rate by 30 basis points to 9.27%; the National Australia Bank raised its by 29 basis points to 9.27% rate and St George Bank is looking to raise it by 40 basis points.
The ANZ Bank is yet to announce its move.
Australian Property Journal
