It’s a whole new ball game for interest rate charges and while farm loans are still to take their place in this new economy, the interest rate position of banks is clear as CBA announces new interest rates for home loans.
CBA has responded today to the Reserve Bank of Australia (RBA) increasing the cash rate by 0.50% (50BPS). As a result, CBA will increase home loan variable interest rates by 0.50% p.a.
New Standard Variable Reference Rates
• Owner Occupier Principal and Interest Standard Variable Rate home loans will increase by 0.50% per annum (p.a.) to 5.80% p.a.
• Investor Principal and Interest Standard Variable Rate home loans will increase by 0.50% p.a. to 6.38% p.a.
• Owner Occupier Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.29% p.a.
• Investor Interest Only Standard Variable Rate home loans will increase by 0.50% p.a. to 6.64% p.a.
Group Executive, Retail Banking, Angus Sullivan said: “We are here to support our customers and have a range of tools to help them manage their repayments online, including aligning them to when and how often they are paid, along with tools to help them budget and track their spending, such as Spend Tracker in the CommBank app.
“We understand the rapidly changing rate environment may raise questions for some of our customers and we are here to help them. We encourage our customers to message us in the CommBank app to explore different support options or to connect with a home lending specialist,” Angus Sullivan interated.
The new home loan variable interest rates will take effect on 15 July 2022. Customers will be able to see their new interest rate in the CommBank app or online via NetBank the day after the change has gone live.
CBA will also increase the interest rates for select savings products.
New Deposit Rates
• GoalSaver with bonus interest will increase by 0.50% p.a. to 1.25% p.a.
• Youthsaver with bonus interest will increase by 0.50% p.a. to 1.45% p.a.
• A new 15-month Term Deposit Special offer of 2.50% p.a.^
“These new deposit rate changes, combined with the increases we’ve made over the past two months, will help deliver better savings outcomes for our customers, however they are looking to save,” Angus Sullivan added.
“We have a range of deposit products to suit our customers’ needs and encourage them to speak with us to ensure they are in the product that best suits them,” Angus Sullivan concluded.
The new deposit rates will take effect on 15 July 2022. Customers will be able to see their new interest rate on the CommBank website.
Where customers can access help
Customers can estimate how much their home loan repayments may increase via the home loan repayments calculator.
CBA has a range of support materials available for customers, including tips for customers to manage their home loan in a rising rate environment.
Customers who are falling behind or think they may fall behind with home loan repayments can message CBA to be connected with our Financial Assistance Solutions Team.
CBA also encourage customers to speak with them about how they can support them via an extensive network of lending specialists.
The major four banks are expected to follow the CBA increases.
