Following the RBA’s cash rate decision on Tuesday, the Commonwealth Bank is the first of the major banks to increase its home loan variable interest rates by 0.50%.
The RBA board decided to lift the official cash rate by 50 basis points to 1.35%, the third increase to the OCR since May.
In response, CBA has raised its interest rates on the following loans:
Owner-occupier principal and interest standard variable rate home loans will increase by 0.50% to 5.80%.
Investor principal and interest standard variable rate home loans will increase by 0.50% to 6.38%pa
Owner-occupier interest-only standard variable rate home loans will increase by 0.50% to 6.29%.
Investor interest-only standard variable rate home loans will increase by 0.50% to 6.64%.
CBA group executive retail banking Angus Sullivan (pictured) said the bank was here to support its customers.
Read more: CBA lifts fixed rates
“We 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 in the CommBank app,” Sullivan said.
“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.”
Sullivan said customers can estimate how much their home loan repayments may increase via the home loan repayment calculator in the CommBank app.
“We have a range of support materials available for customers, including tips for customers to manage their home loan in a rising rate environment.”
Read more: Reserve Bank lifts cash rate again
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 CBA app or online via NetBank the day after the change has gone live.
