Mortgage lender Tic:Toc has raised the variable rate on one of its loans, making it the second lender to increase variable rates in the past month.
Canstar reported that Tic:Toc raised the variable rate for investors paying interest-only by 21 basis points to 2.82 per cent.
The lender also cut variable rates on other products. The rate for investors paying principal and interest was cut by 14 bps to 2.19 per cent and the rate for owner occupiers paying principal and interest was cut by 15 bps to 2.04 per cent.
Last month, Adelaide Bank increased some of its variable mortgage rates. The bank’s rate for owner occupiers paying principal and interest, with a loan to valuation ratio up to 90 per cent, was increased 15 basis points.
The rate for investors paying P&I and with LVRs up to 90 per cent was increased by 20 bps and the rate for investors paying interest only and with LVRs up to 80 per cent was increased by 10 bps.
While variable rate increases remain rare, a number of lenders have increased fixed rates in the past couple of months.
In March, five lenders increased their mortgage rates for four and five-year terms. They are Aussie Home Loans, Bank of Queensland, Bendigo Bank, Commonwealth Bank and Teachers Mutual Bank.
Last month, Bankwest, Greater Bank, Newcastle Permanent, St George Bank and Westpac increased fixed rates.