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Commonwealth Bank deposit and loan interest rates rise by 0.25%

10 August 2007

The Commonwealth Bank today announced it will increase interest rates on a range of deposit, variable home loan and business loan accounts, reflecting recent increases in market rates.

The deposit interest rate on the NetBank Saver and Business Online Saver accounts will increase by 0.25 per cent per annum, effective 13 August. The applicable interest rate for the NetBank Saver account is now 6.25 per cent per annum and Business Online Saver moves to 6.40 per cent per annum.

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

 

Old Rate % pa

New Rate % pa

Change

Complete Home Loan Variable Rate

8.07

(8.19 Comparison Rate)*

8.32

(8.44 Comparison Rate)*

+0.25%

Economiser

(Base Variable Rate)

7.56

(7.69 Comparison Rate)*

7.81

(7.94 Comparison Rate)*

+0.25%

Viridian Line of Credit (Residential Equity Rate)

8.07

8.32

+0.25%

The new variable home loan interest rates and new Residential Equity Rate will be effective for new and existing customers from 13 August 2007.

Variable interest rates on business loans will also increase by 0.25 per cent per annum.

Executive General Manager, Retail Products, Michael Cant said, "While market conditions have produced this interest rate increase and therefore increased required minimum repayments, the majority of Commonwealth Bank variable rate home loan borrowers have a buffer as they are already paying more than the required amount".

"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."

The comparison rate is calculated based on $150,000 over 25 years for a secured loan.
WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

Note: Fees and charges may apply for changes to loan types and repayment options.

ENDS

Media contacts:

Bryan Fitzgerald
General Manager Media
Telephone: 9378 2663

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