Commonwealth Bank raises home loan rates again this month

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Commonwealth Bank has increased its home loan rates for the second time this month, adding more pressure on borrowers.

The bank will raise all fixed-rate home loans by 0.30%, effective Friday. Rates will rise to as high as 7.19% for owner-occupiers and 7.04% for investors.

The changes apply to both new and existing customers, including loans currently being processed.

The bank says the move is due to rising funding costs and changing market conditions.

Earlier this month, CBA also passed on a 0.25% rate hike from the Reserve Bank of Australia to variable home loans and business loans. Those increases also take effect this week.

The cash rate now sits at 4.10%, just below last year’s peak.

Officials warn higher interest rates, combined with rising fuel prices, are putting extra strain on household budgets. Some estimates suggest the average household is now significantly worse off.

There are also growing concerns inflation could climb higher if global tensions continue, especially with oil prices rising sharply.

For borrowers, the message is clear: costs are increasing, and financial pressure is likely to continue in the months ahead.

Source : 9News

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