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CBA first big bank to pass on latest rate hike

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Commonwealth Bank of Australia has become the first of the big four to raise its variable home loan rates after the Reserve Bank’s latest interest rate hike on Tuesday.

 

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The major lender’s rates for owner-occupier and investor mortgages will rise by 50 basis points on August 12.

This will take its standard variable offering, excluding a “wealth package” add-on, to 6.30 per cent.

The increase matches Tuesday’s move by the Reserve Bank of Australia, which lifted its key cash interest rate to 1.85 per cent from 1.35 per cent.

Commonwealth Bank retail banking chief Angus Sullivan said the lender was also offering a limited four-year fixed rate for borrowers wanting more certainty around repayments.

The special rate of 4.99 per cent for owner-occupiers is available from Friday.

“This special is a reduction of 1.60 per cent per annum from our current four-year fixed-package rate and has been rolled out especially to support customers looking for certainty in a changing rate environment,” Sullivan said.

The comparison rate for the new offer is 5.46 per cent a year.

The bank will also increase deposit rates for two products by 50 basis points.

Westpac, National Australia Bank and ANZ are yet to respond to the hike in official interest rates.

-AAP

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