Changes to interest rates

Bendigo Bank today announced an increase of 20 basis points in interest rates effective Monday 21 July applying to its variable home and business loans.

The interest rate for the bank’s new and existing variable residential home loans will be 9.65 per cent from that date.

The 20 basis point increase applies to all of Bendigo Bank’s variable lending, including home and business loans, overdraft and line-of-credit facilities, and credit cards.

The rise takes into account increased funding costs brought about by market pressures which have forced banks to increase lending rates in order to rebalance the burden of costs across all stakeholders.

Chief Executive of Retail Banking Mike Hirst said Bendigo’s approach to loan rates was to be as fair as possible to all stakeholders in the bank’s business.

“We continue to shield our customers from bearing the entire cost increase,” Mr Hirst said.

“While we continue to absorb rising funding costs, there comes a point where we must pass some of the increase on to our customers.

“Bendigo has taken the same approach whatever happens with funding costs. When our funding costs have reduced, we have reduced interest rates.”

Customers will be informed of the changes by letter over the coming days.