Tasmanian-based lender Bank of us will hike interest rates on home loans independently of any Reserve Bank move.
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“After a review of our products and pricing, we have decided to increase our variable home loan and residential investment interest rates by nine basis points,” chief executive Paul Ranson said on Wednesday.
“We chose to hold off passing on any increase to our customers last year.
“The decision to increase interest rates today has not been made lightly, as we understand the impact on borrowers.
“Right now, we are making this small increase to balance increasing regulatory demands and alleviate funding costs pressures.”
The new lending rates will apply from February 1 for new loans and from March 1 for existing loans.
“As the only Tasmanian customer-owned bank, we are committed to keeping our home loan interest rates as low as possible and providing greater value for all our customers as opposed to profit for shareholders,” Mr Ranson said.
The bank’s standard variable rate for its Flexiline home loan will increase from 5.22 per cent to 5.31 per cent.