BENDIGO BANK JOINS OTHER LENDERS IN RAIS­ING RATES

Herald Sun - - BUSINESS DAILY - SAMAN­THA BAI­LEY

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.

Marnie Baker

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