CommBank slugs investors with fixed rate hikes up to 0.50%
Article by Tom Watson
Commonwealth Bank has announced another sweeping range of rate increases, hiking its fixed rate home loans by as much as 0.50% across 14 fixed rate mortgages.
The changes, which come into effect for new customers today will hit investors the hardest - with a 0.50% increase on two to five year fixed rate interest-only loans, while one year fixed rate interest-only loans will rise by 0.25%.
Fixed term interest-only rates have also been raised for owner-occupiers, with a 0.25% increase on one-five year loans. Investors who take out a principal and interest fixed rate loan with the Commonwealth Bank will now be forced to shell out more, after the major lender raised two to five year rates by 0.25%.
The only borrowers to escape the rate increases are new owner-occupiers planning to make principal and interest repayments, with rates unchanged.
This is the second time the Commonwealth Bank has increased home loan rates in the last month, following its earlier increases to variable home loan rates in March.
The latest rate rate hike flurry comes as a crackdown from APRA on interest-only investor lending is underway, and speculation over how the Federal Government will address the housing crisis in the May budget continues.
CBA fixed rate hikes:
Investor interest-only changes
Investor principal and interest changes
Owner-occupier interest-only changes
If you’re looking for a lower mortgage rate outside of the big banks compare the best deals on the market by heading over to the Mozo home loan comparison hub.