Commonwealth Bank lifts interest rates on standard variable home loans

8 October 2009:  The Commonwealth Bank today announced it will increase interest rates on a range of deposit and variable home loan accounts, reflecting recent increases in market interest rates and wholesale funding costs. 

As Australia’s largest home lender the Commonwealth Bank is committed to remaining competitive in the market. For most of the last 12 months, CBA has had the lowest SVR of the major banks.

The deposit interest rate on the NetBank Saver and Business Online Saver accounts will increase by 0.25 per cent per annum, effective Tuesday 13October.

Owner occupied and investment home loan interest rates will increase as follows:

	Old Rate % pa	New Rate % pa	Change
Complete Home Loan Variable Rate	5.74%	5.99%	+0.25%
Economiser (Base Variable Rate)	5.23%	5.48%	+0.25%
Viridian Line of Credit (Residential Equity Rate)	5.84%	6.09%	+0.25%

 

The new variable home loan interest rates will also be effective for new and existing customers from Tuesday 13 October 2009.

Group Executive, Retail Banking Services Ross McEwan said, “While improving market conditions have prompted this increase, the majority of Commonwealth Bank variable rate home loan borrowers are already making repayments at levels above the new minimum requirement.

The Bank’s wholesale funding costs remain high and continue to increase as previous long term funding matures and is replaced with new funding at a significantly higher cost,” Mr McEwan said.

 “Customers are encouraged to review their financial position and budgeting in light of this interest rate increase to ensure that their arrangements remain appropriate for their circumstances.  Those customers who are seeking some assistance or financial advice should contact their branch or our home loan hotline on 13 22 24.  We can discuss with them alternative arrangements, such as extending the loan term,” Mr McEwan said.

 

Media contact:

Steve Batten
Ph: 02 9378 5965
Mob:0411 080 268