The Commonwealth Bank of Australia has today announced that it will increase its fixed mortgage rates after similar moves in August and April this year.

Speculation is rife that the RBA will increase the official cash rate sooner rather than later, with some pundits tipping a rate rise this October.

CBA’s one year fixed rate will now sit at 6.19 per cent after a 50 basis point increase, while its two year fixed rate will sit at 6.84 per cent – up 30 basis point rise.

The three year fixed rate mortgage has increased by 15 basis points to 7.29 per cent and a five year home loan will now be 7.69 per cent after a 10 basis point rise.

The hikes come as no surprise after CBA chief executive Ralph Norris warned that the bank may increase its rates independently of the RBA in response to rising funding costs, back in August.

The bank had previously raised its fixed mortgage rates in August by 0.6 per cent, after a similar rate rise in April of 0.45 per cent.

Source: Mortgage Business