In addition, Commonwealth Bank is introducing new interest-only products, for customers using this repayment option.
No changes have been made to interest rates for owner occupiers. Our owner occupier Standard Variable rate remains at 5.22 per cent per annum, the lowest Standard Variable rate for owner occupiers among the major banks. Business rates also remain unchanged.
“We have carefully considered the current environment when making this decision – in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10 per cent investor home loan growth cap. We believe these changes balance the needs of our borrowers and shareholders, while helping to underpin the long-term sustainability of the Australian home loan market,” said Matt Comyn, Group Executive for Retail Banking Services.
“We continue to offer competitive rates across our products, including the lowest owner occupier Standard Variable rate among the major banks, and a range of competitive fixed rate products. We encourage our home loan customers to speak with one of our lending experts so we can provide them with a home loan solution that is best for their needs,” said Mr Comyn.
The new rates are effective from 16 December 2016. Customers affected by the introduction of our new interest only products will be notified with their regular statements, the product change will be effective in March 2017.