St George raises mortgage interest rates

St George bank has raised home loan interest rates on standard variable mortgages by 20 basis points to 9.67 per cent. Commonwealth and ANZ bank said their interest rates were also under review. Westpac is unlikely to raise rates while the merger with St George remains unfinalised. St George has now raised interest rates on home loans four times this year, outside of Reserve Bank moves to change rates. The move by St George takes it to the top of the pack in terms of home loan rates. Analysts say the move adds to arguments in favour of the Westpac merger, because St George's cost of capital is higher then the AA rated Westpac.

Source: Weekend Australian

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