Aussie Home Loans has announced it will lift its variable home loan rates for existing owner occupied and investment customers following the recent announcements from all the major banks and many smaller lenders.
Aussie Select variable rates will increase by 0.17 per cent and Aussie Optimizer variable rates will rise by 0.20 per cent, with both increases effective from 20 November 2015.
Fixed rates for existing customers are unchanged, however Aussie Select is launching a new owner occupied fixed rate promotion.
The Aussie Select Basic promotional fixed rates are now 4.12 per cent p.a.^ (comparison rate 4.19 per cent p.a.*) for two year fixed and 4.19 per cent p.a.^ (comparison rate 4.20 per cent p.a.*) for three year fixed for owner occupied when paying principal and interest repayments and with a loan to value ratio of up to 80 per cent. These rates are available from 4 November until 24 December 2015.
John Symond, Founder and Executive Chairman of Aussie, said Aussie’s decision will allow it to remain equally sustainable and competitive in this ever-changing market.
“All lenders are impacted by the recent regulatory changes and rising capital costs in some way. Fixed rates now represent good value for those seeking certainty over repayments or who are wary of interest rate rises.
“It was the big four and Macquarie who were charged with holding more capital, and the big bank’s borrowing costs are quite often cheaper than for smaller lenders, so these smaller lenders are already losing out by trying to remain competitive. The big banks putting rates up gives smaller players the chance to fill the hole,” Mr Symond said.