Westpac increase interest rate 20th November 2015

Posted Wednesday, 14 October 2015 at 10:39 by Shape Home Loans
Tagged: APRA lending laws | Loan for doctors | Loan for owners occupier | Loan for investor | Investors | First home buyer | interest rates | Low Doc loans
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For both owners occupier and investment loans, rate set to increase by 0.20% - Westpac

Westpac announced effective 20th November 2015, the rates for owners occupier and investment loans will both increase by 0.20%.

Headline owner occupier home loan variable rates increased by 20 basis points per annum to 5.68 per cent (comparison rate 5.82 per cent) before any discounts.
Headline residential investment property variable rates increased by 20 basis points per annum to 5.95 per cent (comparison rate 6.09 per cent) before any discounts.

Reason for the increase?

You must be wondering " did the RBA increase the rate?" the answer is no.

The reasons for the sudden increase in rate by Westpac is to meet the APRA's ( The lending and regulatory authority of Australia) minimum capital guidelines that has been set for December. Back in June - August, most banks increase the rate by 0.25%- 0.44% for investment loans only, however today Westpac is the first bank to increase the rate for owners occupier ( Note Westpac already increase the rate for investors by 0.27% in August)

Click here for a list of the top 21 banks and their rate decision for October and November 2015.