 CBA raises mortgage rates
The Commonwealth Bank of Australia has moved to lift home loan interest rates. Standard variable home loan rates with CBA will increase by 37 basis points, which is 12 basis points higher than the increase to the official rate. Commonwealth Bank is the country's largest home loan lender.
On Tuesday, the Reserve Bank of Australia moved to lift the official cash rate by 25 basis points to 3.75 per cent. Westpac immediately announced they were putting mortgage rates up 45 basis points, to the outrage of many home owners. National Australia Bank lifted their rates also, but only by the same as the RBA.
ANZ say are still reviewing their rates and financial markets are waiting to see if they stick to the RBA increase or go higher like Westpac.
Retail banking group executive Ross McEwan said in the statement: "While the change in the official cash rate has partly contributed to this interest rate increase, the sustained increase in wholesale funding costs that we are experiencing has also been a major factor.
Commonwealth Bank also holds the title of Australia's biggest deposit holder, and it said it would increase rates on a range of deposit accounts by up to 50bp.
NAB’s chief executive, Cameron Clyne, says their decision to follow the RBA is yet one more bit of evidence of his commitment to changing retail customer relations.
With Commonwealth Bank, National Australia Bank and Westpac all moving within days to lift home loan rates, all eys are now on ANZ.
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