Today Bank Australia has decided to increase its variable interest rates for investor and owner occupied home loans by 0.08%. The effective date of the change will be 1 February 2017.
Acting CEO John Yardley said this was a difficult but necessary decision for the bank.
“We always aim to be highly competitive and ensure that we treat our customers who own the bank fairly by balancing lending product revenue and the interest we pay our customers for their deposits.
“This is particularly relevant to Bank Australia as the money we lend to customers comes from deposits made by other customers.
“With the cost of securing deposits increasing as banks compete fiercely for deposits, this has placed pressure on the bank’s funding costs. As a result we need to slightly increase our lending rates.
“Following these changes our home loans remain very competitive,” John said.
Bank Australia’s Standard Variable Rate will increase 0.08% to 4.82%.
Customers with an owner occupied loan paying the standard variable rate with a $250,000 loan will see their repayments increase by $11 a month (principal and interest home loan over 30 years).
New rate schedules for Bank Australia products will be published and effective on Wednesday 1 February 2017 on www.bankaust.com.au