BENDIGO BANK JOINS OTHER LENDERS IN RAISING RATES
BENDIGO and Adelaide Bank has followed a string of lenders and raised its home loan rates out-of-cycle with the Reserve Bank as funding costs increase.
The regional lender announced yesterday it would lift variable rates for owner occupiers and investors, effective from July 23.
It comes after AMP on Thursday announced a raise to its variable interest rates.
A succession of other lenders have raised rates in recent weeks, although none of the big four banks has moved.
Macquarie, ING, ME, Bank of Queensland and Wollongong-based IMB are among those who have lifted their mortgage rates in recent weeks, despite widespread expectations the RBA will keep the official cash rate on hold into next year.
At Bendigo, owner occupiers repaying their principal will pay an extra 0.10 percentage points.
Owner-occupiers with interest-only loans will pay 0.16 percentage points more.
The rates on investment home loans and lines of credit will increase by 0.1 percentage points.
“Funding costs have been steadily increasing this year, and we’ve absorbed this cost impact to date,” managing director Marnie Baker said.
“Today’s adjustment to the variable interest rates will assist in balancing this funding cost increase.
“We carefully balance the interests of our mortgage customers, those who earn money through deposits and those who invest in our bank.
“We must ensure our pric- ing remains market competitive, provides the appropriate platform for sustainable growth and supports the hundreds of communities in which we operate.”
Analysts have said the big four banks are likely to raise mortgage rates by September in response to rising funding costs.
Bendigo shares dipped 1 per cent yesterday to close at $11.31.