CBA raises fixed rates

The Commonwealth Bank of Australia yesterday confirmed that it will lift interest repayments on their fixed rate mortgages by as much as 0.6 per cent. The announcement comes one week after Westpac raised their fixed term home loan interest rates by up to 0.45 per cent.

A CBA spokesperson told The Daily Telegraph that increased long-term funding costs were to blame for the rate hike.

The largest increases will apply to two year and four year term loans, which will rise from 5.94 per cent to 6.54 per cent and 6.99 per cent to 7.59 per cent respectively.

CBA's longer-term loans, the 10 and 15 year mortgages, have increased to 8.39 per cent and 8.44 per cent respectively.

This is the second time CBA has hiked fixed rate in the last four months. In April fixed rate loans saw an increase of between 0.20 per cent and 0.45 per cent.