The Commonwealth Bank has announced it is increasing its variable home loan interest rates by 0.14 per cent.

The bank's standard variable rate home loan will increase from 9.44 per cent to 9.58 per cent from Monday for both new and existing customers and its basic variable home loan from 8.93 per cent to 9.07 per cent.

Variable interest rates on some business loans will also increase by 0.15 per cent.

The move by the Commonwealth Bank, Australia's biggest home lender, follows rate rises by St George Bank and Bankwest in the past week.

Retail Banking Services group executive Ross McEwan says the decision is due to the continued increase in its cost of funds, but it is still shielding customers from the full impact.

"The bank continues to balance the needs of its shareholders and customers by not passing on the full impact of the increased funding costs to borrowers," he said.

"As a result [it] has seen the margins on its home loan business decline significantly in the last year.

"The majority of Commonwealth Bank variable rate home loan borrowers have a buffer as they are already paying more than the required amount. "

He says any customers seeking assistance with their financial situations are urged to contact the bank.

News Source: http://www.abc.net.au/