Bendigo Bank increases residential investment variable interest rate by 0.20% p.a.
Bendigo Bank has announced it will increase its residential investment standard variable interest rate by 0.20% p.a. to address recent industry-wide concerns regarding residential investment lending.
As a consequence the residential investment package variable rate will also increase by 0.20% p.a. for new business and most existing investor variable rate loans.
Bendigo and Adelaide Bank Managing Director Mike Hirst said implementing this measure supports the Bank's prudent management by appropriately pricing for risk and assists restraining investor mortgage book growth to less than 10 percent per month as required by the Australian Prudential Regulatory Authority (APRA).
"When it comes to setting interest rates, our Bank takes into account a wide range of factors and carefully consider its key stakeholders including borrowers, depositors, staff, shareholders, partners and the wider community," Mr Hirst said.
"We believe this approach considers the needs of our stakeholders while continuing to provide customers with market competitive rates," he said.
The adjustment is effective 1 September for new business and 1 October 2015 for existing residential investment loans.