IMB Bank, one of Australia’s leading mutual banks, have increased its standard variable interest rate by 15 basis points for new and existing home loan customers.
The rate changes came into effect as of 5 October, with the Standard Variable Home Loan rate moving to 5.42 per cent.
In a statement released last Friday, the rate increases have been linked to recent moves made by big four banks.
“Despite home loan interest rates being at historically low levels, many financial institutions have raised their home loan interest rates in recent weeks.
Like other banks, we use customers’ deposits and other sources of funding to lend to our borrowers and we pay interest to attract and use these deposits.
Over recent months, the cost of this money has increased and as a result we are having to pass on some of this increased cost.
Although this decision was difficult, we need to move our lending rates in order to continue to balance the needs of our borrower and depositor members and maintain investment in new banking technologies, products and our communities.” – IMB Bank