Commonwealth Bank lifts mortgage rates, same day as ANZ

By Oonagh Reidy

Commonwealth Bank is the latest bank to hike its interest rates today – just hours after rival ANZ.

CBA customers with owner-occupier home loans will now be paying 5.25 per cent interest – up three basis points. The bank blamed the mortgage rates hike on “rising costs and regulatory responsibilities.”

The standard variable rate for interest only owner-occupier mortgages have also been lifted 25 basis points to 5.47 per cent. The hikes are effective from May 08, CBA said today.

Also read: ANZ raises investor rates, one week after rivals

The news comes on the same day ANZ lifted its investor and interest-only mortgage rates, and hot on the heels of other ‘Big 4’ banks Westpac and NAB who upped rates just last week.

CBA also lifted standard variable rate for principal and interest investment home loans to 5.80 per cent. Meanwhile, interest only investment home loans will increase to 5.94 per cent.

Matt Comyn, Group Executive for Retail Banking Services, blamed “rising costs and regulatory responsibilities [which] mean we are increasing home loan interest rates.”

“We encourage customers to switch to principal and interest, where this meets their needs, so that they can continue to enjoy historically low rates.”