Non-major lender MyState Bank announced that it has increased rates for variable residential and investment loans.
The new rates will apply to new and existing loans starting Tuesday, May 29. In a statement, MyState Bank said the interest rate was in response to the changing dynamics of the financial industry.
MyState Bank head of broker sales Paul Herbert said the decision to raise the interest rate, while difficult, is in recognition of the ongoing need to invest and to further improve services for clients.
"We have carefully considered a number of factors relating to changing our variable interest rates and the decision to raise interest rates were difficult and not one that we have taken lightly. While our interest rates will rise, they are extremely low by historical standards and remain highly competitive in the market," Herbert said.
He added: "At the same time, we are continuing to improve our services for our brokers and customers to ensure that we are easy to do business with.”
Low-interest rates limit price growth, economist says
The reason behind central bank's efforts to maintain interest rate
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan