Interest- only rate to rise
BANKWEST is lifting mortgage rates for interest- only loans, following the lead from the big four banks that already adjusted rates in an attempt to slow down riskier lending.
The Commonwealth Bankowned lender will from Tuesday increase new interest- only owner occupier home loans by 0.05 per cent, while dropping new principal and interest investor home loans by 0.15 per cent.
It will also, from October, lift existing interest- only rates for both owner- occupiers and investor home loans by 0.35 per cent and 0.25 per cent respectively. Bankwest general manager products and pricing Paul Vivian said the lender aimed to balance out the needs of customers, shareholders and regulators.