CBA joins other major banks to penalise interest-only borrowers

Customers of Commonwealth Bank who are making interest-only variable mortgage repayments may want to consider switching out of that arrangement.

Australia’s largest bank has joined the other big three banks in lifting interest-only mortgage rates in an attempt to de-risk its lending portfolio and comply with regulatory requirements.

CBA customers who are making interest-only home loan repayments will see their rates rise by 30 basis points – or 0.3 percentage points – from July 7.