Variable rates start to rise at CommBank

The Commonwealth Bank has increased its standard variable investor home loan interest rates by 7 basis points, to 5.56 per cent per annum.

It also increased its Viridian Line of Credit interest rates by 15 basis points, to 5.78 per cent  per annum.

No changes have been made to interest rates for owner occupiers with the owner occupier standard variable rate at 5.22 per cent per annum, the lowest among the major banks.

Business rates also remain unchanged.

“We have carefully considered the current environment when making this decision – in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10 per cent investor home loan growth cap.

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,” said Matt Comyn, Group Executive for Retail Banking Services.

The new rates are effective from 16 December 2016.