Mortgage Business
CBA hikes floor rate, predicts 2022 rate rise By Malavika Santhebennur 24 June 2021
The big four bank has said that it has increased its serviceability floor rate to ensure it continues to lend responsibly, and has predicted that the cash rate will rise to 1.25 per cent by Q3 2023.
The Commonwealth Bank of Australia (CBA) has increased its serviceability floor rate to 5.25 per cent per annum, up from the previous floor rate of 5.10 per cent, effective 19 June.
However, the major bank said its interest rate buffer of 2.50 per cent has remained unchanged.
Explaining the reason for the floor rate increase, a CBA spokesperson said that it is to ensure that CBA continues to lend responsibly in the current record-low interest rate environment, and added that it has formed a part of its regular monitoring and review
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