The Greater Building Society will lift its standard variable home loan interest rate by 0.20 percent to 9.30 percent.
Chief executive Don Magin said that it was following other financial institutions in lifting rates because of the increasing cost of sourcing funds. It had delayed the increase for as long as possible.

“Even with the increase, the Greater Building Society's standard variable rate is still well below that of the major banks,” Mr Magin said.

The new rate is effective from today for new borrowers and from August 1 for existing home loan customers.