Home loan rates rise: Bendigo and Adelaide starting a trend?

Posted: 15 December 2016 1:41 pm
News
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Bendigo Bank have raised variable rates for owner occupiers.

In the weeks surrounding the Reserve Bank’s final board meeting of 2016, lenders have raised interest rates in spite of the RBA’s decision to hold the cash rate steady. While the moves have thus far primarily impacted fixed rates and investor variable rates, Bendigo Bank has announced it will raise variable rates by 10 basis points for both investors and owner occupiers.

The change takes the bank’s variable rate for owner occupiers to 5.48% and its investor rate to 5.76%. The changes come into effect from 15 December.

Full round-up of out-of-cycle rate changes

Bendigo and Adelaide Bank managing director Mike Hirst said the change reflected rising funding costs, and argued that recent “ultra-competitive” home loan rates were “unsustainable”.

“The cost of funding these loans through both retail deposits and wholesale term debt is rising. Global financial markets have been volatile and this is impacting the cost of raising funds domestically as competition for stable deposits increases,” Hirst said.

Hirst argued that the bank’s rates were still “well below” the average standard variable rate in the market.

“When setting these rates we’ve tried to carefully balance the interests of these mortgage customers, those who earn money through deposits and those who invest in our bank,” Hirst said.

LoanOld rateNew rateChange
Basic Variable (Owner Occupier)4.28%4.38%Up 0.10%
Residential Variable (Owner Occupier)4.48% - 5.38%(depending on borrowing amount)4.58% - 5.48%(depending on borrowing amount)Up 0.10%
Connect Package Variable (Owner Occupier)4.13% - 4.43%(depending on borrowing amount)4.23% - 4.53%(depending on borrowing amount)Up 0.10%
Generation Green (Owner Occupier)4.48% - 4.88%(depending on borrowing amount)4.58% - 4.98%(depending on borrowing amount)Up 0.10%
Home Equity Line of Credit (Owner Occupier)4.88% - 5.78%(depending on borrowing amount)4.98% - 5.88%(depending on borrowing amount)Up 0.10%
Low Doc (Owner Occupier)5.58%5.68%Up 0.10%
Bridging Finance (Owner Occupier)5.38%5.48%Up 0.10%
Basic Variable (Investor)4.56%4.66%Up 0.10%
Residential Variable (Investor)4.76% - 5.66%(depending on borrowing amount)4.86% - 5.76%(depending on borrowing amount)Up 0.10%
Connect Package Variable (Investor)4.41% - 4.71%(depending on borrowing amount)4.51% - 4.81%(depending on borrowing amount)Up 0.10%
Home Equity Line of Credit (Investor)5.11% - 6.01%(depending on borrowing amount)5.21% - 6.11%(depending on borrowing amount)Up 0.10%
Bridging Finance (Investor)5.66%5.76%Up 0.10%
LoanOld rateNew rateChange
Variable SmartFit (LVR <90%)3.99% (OO), 4.44% (INV)4.09% (OO), 4.54% (INV)Up 0.10%
Variable SmartFit (LVR >90%)4.39% (OO), 4.64% (INV)4.49% (OO), 4.74% (INV)Up 0.10%
Variable SmartSaver (LVR <90%)3.94% (OO), 4.39% (INV)4.04% (OO), 4.49% (INV)Up 0.10%
Variable SmartSaver (LVR >90%)4.29% (OO), 4.54% (INV)4.39% (OO), 4.64% (INV)Up 0.10%
Variable SmartDoc5.15% (OO), 5.40% (INV)5.25% (OO), 5.50% (INV)Up 0.10%
Variable SmartDoc Plus5.29% (OO), 5.54% (INV)5.39% (OO), 5.64% (INV)Up 0.10%

Image: Shutterstock

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