Commonwealth Bank is raising its standard variable rates for investor mortgages by 0.07 per cent following earlier raises to its fixed rate products.
Australia’s largest bank said on Tuesday its standard variable investor loan rates will be 5.56 per cent from Friday, while its owner occupier rates will remain unchanged.
The lender already increased interest rates on two-, three- and five-year fixed-rate owner-occupier and investor loans on December 2.
“We have carefully considered the current environment when making this decision,” CBA retail banking group executive Matt Comyn said in a statement.
Mr Comyn said the move was in response to higher funding costs and the regulatory requirement not to grow its investor home lending by more than 10 per cent per annum.
“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,” Mr Comyn.
Rivals ANZ and National Australia Bank have already increased variable rates on investor home loans, while Westpac lifted variable rates for all interest-only mortgages.