A mortgage funder has succumbed to funding cost pressures, hiking variable mortgage rates by up to 15 basis points for both new and existing home loan customers.
NAB-owned wholesale funder Advantedge has announced that it will increase its variable mortgage rate by 15 basis points, effective for new customers from 13 March and for existing customers from 15 April.
Owner-occupier principal and interest rates with a loan-to-value ratio of up to 80 per cent will now start from 3.74 per cent.
Like many other lenders, Advantedge has attributed its decision to “sustained funding cost pressures”.
Advantedge is the latest player in the lending market to hike its mortgage rates out-of-cycle, amid similar changes from several lenders throughout 2018 and since the turn of the year.
Conversely, some lenders have bucked the trend and dropped interest rates on their mortgage offerings, with the likes of Heritage Bank, Teachers Mutual Bank, and Adelaide Bank reducing rates by up to 92 basis points.
However, despite lifting its variable mortgage rates, Advantedge has also announced reductions to its fixed rate mortgage offerings.
Effective 13 March 2019, Advantedge will decrease its two-year fixed interest rates on all residential home loan products by 16 basis points, with such loans now starting from 4.21 per cent.
The change applies to owner-occupier and investor loans, with both principal and interest and interest-only repayments.
[Related: Bank announces rate hikes of up to 40bps]