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Bendigo Bank’s home loan variable interest rates to change

9 December 2016 |Announcements

At its fortnightly pricing committee meeting, Bendigo Bank decided to increase its residential mortgage variable interest rate by 0.10% p.a. to 5.48% p.a. for owner occupied and 5.76% p.a. for investor loans.

Bendigo and Adelaide Bank Managing Director Mike Hirst said the adjustment reflects that recent ultra-competitive mortgage pricing is unsustainable.

“The cost of funding these loans through both retail deposits and wholesale term debt is rising. Global financial markets have been volatile and this is impacting the cost of raising funds domestically as competition for stable deposits increases,” Mr Hirst said.

“Even after this change, the vast majority of our borrowers pay well below the standard residential mortgage variable interest rate, and at rates which are a far cry from the 7.8% percent interest rates seen in November 2010.

“When setting these rates we’ve tried to carefully balance the interests of these mortgage customers, those who earn money through deposits and those who invest in our Bank,” he said.

Customers on a residential owner occupied variable interest rate with a $250,000 loan will see their repayments increase by $15.63 a month (principal and interest home loan over 30 years).

The adjustment is effective 15 December 2016 for new and existing loans.

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Bendigo and Adelaide Bank Limited, ABN 11 068 049 178 AFSL / Australian Credit Licence 237879. Any advice provided on this website is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable Disclosure Documents before acquiring any product described on this website. Please also review our Financial Services Guide (FSG) before accessing information on this website. Information on this page can change without notice to you.

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