You are about to finalise a loan to buy your first home. You have had trouble finding an institution that was willing to lend you the money you required, despite a strong deposit. You work history has been a bit mixed with a number of part time and casual jobs such as fruit picking and restaurant work. You now have a steady job and you are about buy a modest house in the outer suburbs. You get a phone call from your bank the day before the loan is due to be drawn down telling you that the interest rate is going to be three percent higher than previously discussed. You know that there has been no change in monetary policy or market interest rates recently. Which of the following is this an example of:

a.

Clerical error.

b.

Predatory lending.

c.

Changes in the yield curve.

d.

Increased loan risk.