Commonwealth Bank has raised its home loan rates for the second time this month, slugging mortgage holders already doing it tough.
The “Big Four” bank today announced a 0.30 per cent increase to all fixed-rate home loan products will come into effect on Friday.
Rates will reach up to 7.19 per cent for owner-occupiers and 7.04 per cent for investors.
The Commonwealth Bank logo outside a branch. (Eamon Gallagher)
This will affect new and existing customers, including applications in progress.
A Commonwealth Bank spokesperson attributed the decision to “broader funding and market conditions”.
“As Australia’s largest lender, we offer a range of home loan options designed to meet the diverse needs of our customers,” the spokesperson said.
Fixed-rate lending currently represents a small share of the Commonwealth’s new home loans.
Those changes will also come into effect this Friday.
“We recognise interest rate changes can put additional pressure on household budgets and influence how people plan and manage their finances,” CBA group executive Angus Sullivan said at the time.
“We don’t want to have a recession, but if it’s hard to get inflation down, then we’re going to have to deal with that, possibly,” she said.
The cash rate currently sits at 4.10 per cent, just 0.25 per cent below the 2024 peak.
The average household with a mortgage and at least one car is now about $75 worse off, based on data by Canstar and the Australian Automobile Association.
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