Second lender increases variable mortgage rates
Tic Mortgage Lender: Toc raised the variable rate on one of its loans, making it the second lender to increase variable rates in the past month.
Canstar said Tic: Toc has raised the variable rate for investors who pay interest from only 21 basis points to 2.82 percent.
The lender has also reduced variable rates on other products. The rate for investors paying principal and interest was reduced by 14 basis points to 2.19 percent and the rate for homeowners paying principal and interest was reduced by 15 basis points to 2.04 percent.
Last month, Adelaide Bank increased some of its variable mortgage rates. The bank’s rate for homeowners paying principal and interest, with a loan-to-appraisal ratio of up to 90 percent, has been increased by 15 basis points.
The rate for investors paying P&I and with LVR up to 90 percent has been increased by 20 bps and the rate for investors paying interest only and with LVR up to 80 percent has been increased by 10 bps .
While variable rate increases remain rare, a number of lenders have increased fixed rates over the past two months.
In March, five lenders increased their mortgage rates for periods of four and five years. These are Australian home loans, the Bank of Queensland, Bendigo Bank, Commonwealth Bank and Teachers Mutual Bank.
Last month Bankwest, Greater Bank, Newcastle Permanent, St George Bank and Westpac raised fixed rates.