Home
Home Loans
News
Second lender lifts mortgage rates

Second lender lifts mortgage rates

18 Apr, 2018 - 2 min read

State Custodians has announced it will increase interest rates on variable home loans by 0.10 percentage points, effective 17 April 2018.

The changes will see State Custodians’s competitive owner-occupier principal and interest rate lift to 3.64 per cent, and its interest-only rate increase to 3.89 per cent. Investor mortgage rates will also rise to 3.89 per cent for principal and interest loans and 4.14 per cent for interest-only loans.

State Custodians is the second Australian lender to lift mortgage rates in as many months, following Suncorp’s decision to hike in March. At the time, Suncorp cited higher funding costs as the catalyst for the rate rise.

RateCity money editor, Sally Tindall, said borrowers should prepare for higher rates as more banks lift out of cycle with the Reserve Bank:

“Australian banks are facing increasing global funding pressures, so it was only a matter of time until our banks passed it on to customers in the form of higher rates.”
“Two lenders so far have increased rates, but it signals the end of historically-low home loan rates here. It’s highly likely that more banks will follow suit soon.”

For a $350,000 30-year home loan (owner-occupier paying principal and interest), the rate increase equates to an additional $20 per month or $7076 over the life of the loan.

State Custodians product	Loan purpose	Repayment type	Current rate	Increase	New rate
Low rate home loan (up to 80% LVR)	Owner occupier	P&I	3.54%	0.10%	3.64%
Low rate home loan (up to 80% LVR)	Owner Occupier	IO	3.79%	0.10%	3.89%
Low rate home loan (up to 80% LVR)	Investor	P&I	3.79%	0.10%	3.89%
Low rate home loan (up to 80% LVR)	Investor	IO	4.04%	0.10%	4.14%

Disclaimer

This article is over two years old, last updated on April 18, 2018. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

Compare home loans in Australia

Product database updated 25 Apr, 2024

This article was reviewed by Research Director Sally Tindall before it was published as part of RateCity's Fact Check process.

Laine Gordon

Head of Public Relations

Laine Gordon is the Head of Public Relations at RateCity and an experienced journalist and research specialist. With a background in news and feature writing, covering finance, media and even food (a passion of hers) at Reed Elsevier publications, Laine brings almost two decades of experience to the team. Having covered major areas of interest to the general public from hip pocket issues to rising and falling interest rates and the impact to mortgages, credit and saving in Australia, she is passionate about researching and telling people’s stories to help others make better decisions about their own finances.