CBA hikes fixed rates

Commonwealth Bank has raised its fixed rates for the third time in six weeks in response to growing funding costs.

The bank increased owner-occupier rates by between 0.15 per cent and 0.3 per cent for terms of between one and five years. Fixed rates for property investors rose by up to 0.6 per cent.

“Customers waiting in CBA’s queue to have their loan approved who didn’t lock in their rate will be cursing themselves this morning, particularly as CBA has one of the cheapest rate lock fees available,” said RateCity research director Sally Tindall.

“It’s raining rate hikes and the storm is nowhere near over. The flood of fixed rate hikes is likely to keep going as the cost of fixed-term funding continues to rise.”

The number of fixed rates under 2 per cent is dropping rapidly, Tindall said. Six months ago there were 161 fixed rates under 2 per cent. Today there are just 87.

“NAB is the only big four bank with a rate starting with a ‘1’ – its one-year fixed rate – however this is likely to rise in the next round of the bank’s rate hikes,” Tindall said.

Be the first to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.