Commonwealth Bank hikes interest rates for homebuyers: ‘Increasingly bleak’
CBA has followed NAB’s move and hiked interest rates for new homebuyers.
Australia’s biggest bank, Commonwealth Bank, has today announced it will increase its home loan rates for new customers on its package home loan.
The major bank will increase its Wealth Package home loan by 0.10 per cent for customers with bigger deposits.
This move will see rates increase to 6.09 per cent for owner-occupier borrowers with a 20 per cent deposit making principal and interest repayments.
Also read: CBA, Westpac, ANZ and NAB hit customers with rate hikes
Also read: RBA rate hike: Bank’s urge Aussies to ‘reach out’
This is the fourth time Commonwealth Bank has increased the rate on its Wealth Package loan for new homebuyers in the past three months, according to RateCity, on top of the standard Reserve Bank (RBA) rate hikes.
“Things are looking increasingly bleak for new customers hoping to get a loan with Australia’s biggest bank,” RateCity research director Sally Tindall said.
“CBA’s lowest advertised rate with an offset has now gone up by 0.82 percentage points in the space of three months. That’s 0.32 percentage points more than the rate rises [existing] customers have been subjected to.”
CBA’s changes come after NAB also hiked interest rates for new borrowers yesterday, increasing its basic variable rate by 0.10 per cent. The two major banks have also recently dumped their cashback offers for home loan refinancers.
Tindall said the rising cost of funding was putting pressure on banks’ profit margins for new customers.
“Last year, CBA was aggressively cutting new customer rates and splashing around cash incentives in a bid to encourage customers to switch,” she said.
“But the banks have been too successful at their own game – they want to get the refinancing genie back in the bottle because it’s costing them far more than they bargained for.”
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