Changes to Interest Rates on Home Loan Products and Viridian Line of Credit

Friday 24 March 2017

Commonwealth Bank has today announced an increase in its Standard Variable Rate home loan interest rates and Viridan Lines of Credit from Monday 8 May 2017.

Frequently Asked Questions

 

What was announced?

Commonwealth Bank has today announced an increase in its Variable Home Loan interest rates and Viridian Line of Credit products effective Monday 8 May 2017:

- The standard variable rate for owner-occupier home loan customers paying principal and interest will increase 3 basis points to 5.25 per cent per annum.

- The standard variable rate for interest only owner-occupier home loans will increase by 25 basis points to 5.47 per cent per annum.

- The standard variable rate for principal and interest investment home loans will increase by 24 basis points to 5.80 per cent per annum. 

- The standard variable rate for interest only investment home loans will increase by 26 basis points to 5.94 per cent per annum. This change is separate and in addition to the announcement on 15 February 2017, when we announced an increase to the Standard Variable Rate for Interest Only Investment loans, which will be increasing to 5.68% from 3 April 2017.

- Viridian Line of Credit rates will increase by 0.26% p.a. to 6.08% per annum for loans with a personal and Investment purpose. This change is separate and in addition to the announcement on 15 February 2017, when we announced an increase to the Viridian Line of Credit Rates, which will be increasing to 5.82% from 3 April 2017.

- The Equity Unlock for Seniors Rate remains unchanged.

Our P&I Standard Variable Rate for Owner Occupiers remains the equal lowest standard variable rate among the major banks.

 

Q&A

Why is Commonwealth Bank increasing interest rates for Variable Home Loans and Viridian Lines of Credit?

- We have made these changes after careful consideration of a number of key factors, including regulatory responsibilities and rising costs. We have sought to minimise the impact for the majority of our home loan customers, who are Australian families trying to pay off their home, by maintaining the equal lowest standard variable rate among the major banks for owner occupiers repaying both principal and interest.

Will my repayments automatically increase after Commonwealth Bank’s decision to increase Variable Home Loan interest rates?

- Yes. From Monday 8 May 2017, for interest only repayments, we will automatically adjust loan repayments to ensure customers cover the amount of interest charged.

- For principal and interest repayments we will automatically increase the repayment amount for those customers paying the minimum required monthly repayment amount (RMRA) from Monday 8 May 2017.

How can I change my repayments to Principal and Interest if Interest Only repayments no longer suit my needs?

- You can easily make changes to your repayments by completing a Change my loan repayment request in NetBank via Settings > Payment settings >

Home loan repayments.

- You can also contact us on 13 22 24 between 8:00am and 8:00pm AEDT, or visit your nearest branch.

- We encourage customers to switch to Principal and Interest, where this meets their needs, so that they can continue to enjoy historically low rates.

I am unsure if my home loan product remains appropriate for my needs.

- If you are unsure if your home loan product remains the most appropriate for your needs, you can speak with one of our Home Lending Specialists who can conduct a Financial Health Check and assess the product(s) and options that may best suit your needs.  To do this, please visit one of our branches or call us on 13 22 24

I would like more information. Who can I speak to?

- If you would like us to conduct a Financial Health Check to ensure we are supporting you to achieve your financial goals you can visit any Commonwealth Bank branch or call us on 13 22 24 for more information.

- Refer to our Home Loan Interest Rates website, which we update regularly to reflect current interest rates. We will update the website on Monday 8 May 2017 to reflect these changes.