Commonwealth Bank has raised its home loan rates for the second time this month, adding further pressure on mortgage holders already facing financial strain.
The “Big Four” bank announced a 0.30 per cent increase to all fixed-rate home loan products, which will come into effect on Friday. As a result, rates will rise to as high as 7.19 per cent for owner-occupiers and 7.04 per cent for investors.
The increase will impact both new and existing customers, including those with applications currently in progress. A Commonwealth Bank spokesperson said the decision was driven by “broader funding and market conditions.”
Earlier this month, the bank also passed on a 0.25 per cent cash rate hike by the Reserve Bank of Australia to its variable home loan and business loan rates, with those changes also taking effect on Friday.
CBA Group Executive Angus Sullivan acknowledged that rising interest rates could place additional pressure on household budgets and influence how customers manage their finances.
