Changes to Investment Home Loan Interest Rates

Friday 24 July 2015

Commonwealth Bank has today taken further steps to moderate investor home loan growth and to manage its portfolio to meet the Australian Prudential Regulation Authority’s (APRA) 10% limit on investment home lending growth:

- We are increasing our Variable Rates for new and existing Investment Home Loans by 27 basis points effective from Monday 10 August 2015.

- We are also increasing our Fixed Rates for new Investment Home Loans effective from Friday 31 July 2015.

We are not making any changes to our owner-occupied Home Loan or Line of Credit interest rates (having already moved owner-occupied fixed rates earlier this week).

Changes to Investment Home Loan Variable Rates

Customers either have an owner-occupied Home Loan product or an Investment Home Loan product.  Customer pricing on these products is based on the reference interest rate shown in Item C on their Consumer Credit Contract Schedule.

Owner-occupied Home Loan and Investment Home Loan product reference rates are different.  For example, customers with an owner-occupied Standard Variable Rate Home Loan will have their reference interest rate based on the Bank’s Standard Variable Rate, while customers with an Investment Home Loan will have their reference interest rate based on the Bank’s Investment Home Loan Standard Variable Rate. These rates are separate, can move independently and have been different in the past.

Today, Commonwealth Bank announced that it is moving its variable rates for investor home loans effective from Monday 10 August 2015 as follows:

- The Investment Home Loan Standard Variable Rate, Investment Home Loan Base Variable Rate, Investment Home Loan No Fee Variable Rate, Investment Home Loan Low Doc Standard Variable Rate and Investment Home Loan Low Doc Base Variable Rate will increase by 27 basis points (0.27%).

- There are no changes to the Bank’s Standard Variable Rate, Base Variable Rate, No Fee Variable Rate, Low Doc Standard Variable Rate, Low Doc Base Variable Rate for owner-occupied customers.

- There are no changes to the Bank’s Residential Equity Rate for Lines of Credit.

Commonwealth Bank’s new investment Standard Variable Rate will be 5.72% per annum.

Commonwealth Bank’s owner-occupied Standard Variable Rate will remain at 5.45% per annum.

These variable interest rate changes are effective from Monday 10 August 2015 for new and existing variable rate Investment Home Loan customers (including customers who roll onto a variable rate following the end of a fixed rate term).

Changes to Fixed Rates

The Group is increasing Fixed Rates for new Investment Home Loans effective from Friday 31 July 2015 as follows:

- The 1 Year Fixed Rate is increasing by 0.30% to 4.79% p.a.

- The 2 Year Fixed Rate is increasing by 0.40% to 4.89% p.a.

- The 3 Year Fixed Rate is increasing by 0.40% to 4.89% p.a.

- The 4 Year Fixed Rate is increasing by 0.30% to 4.99% p.a.

- The 5 Year Fixed Rate is increasing by 0.10% to 4.89% p.a.

- The 1 Year Guaranteed Rate is increasing by 0.30% to 4.79% p.a.

There are no changes for customers who have an existing Fixed Rate Investment Home Loan.

Fixed Rates for new owner-occupied lending are not changing, having changed effective Wednesday, 22 July 2015.

For further information, please view our media release.

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