There are currently numerous changes coming through at the moment, mostly surrounding investment loans. These changes are predominantly a result of the restrictions that APRA are currently imposing on the lending institutions around investment lending to try curb this type of lending.
Overview of key changes
ANZ
- Effective 10 August 2015, ANZ is changing its Residential Investment Property Loan (RIPL) Index rate from 5.38% to 5.65% (+0.27%)
- The Residential Investment Property Loan Index is the variable index rate that applies to Standard Variable Residential Investment Loans (SVRIL)
- This change will result in a difference between the standard variable interest rate for two products:
- Standard Variable Home Loans (SVHL)
- Standard Variable Residential Investment Loans (SVRIL)
- The rate change will apply to affected products including all new sales and existing loans from 10 August 2015.
CBA
Changes to Investment Home Loan Interest Rates
The Commonwealth Bank has today taken further steps to moderate investor home loan growth and to manage its portfolio to meet the Australian Prudential Regulation Authority’s (APRA) 10% limit on investment home lending growth:
- We are increasing our Variable Rate for new and existing Investment Home Loans by 27 basis points (0.27%) effective from Monday 10 August 2015.
- We are also increasing our Fixed Rates for new Investment Home Loans effective from Friday 31 July 2015.
- We are not making any changes to our owner-occupied Home Loan or Line of Credit interest rates.
NAB
We’re making changes to our variable and fixed rates. These changes are in response to industry and regulator concerns to temper growth in investor lending.
What’s changing?
- Interest rates on Interest Only (Investor and Owner Occupier) home loans and Line of Credit facilities will be increasing by 29bps, effective 10 August 2015 for new customers.
- Interest Only fixed rates for new customers will also increase by 29bps, effective 10 August 2015.
- Existing variable rate loans with Interest Only repayments will increase by 29bps for the duration of the Interest Only period, effective from 10 September 2015.
- Existing interest only applications impacted by the recent increase to investor pricing will be adjusted accordingly to reflect a total 29bps increase.
Macquarie
In response to market conditions, including investor lending restrictions, we are making the following pricing changes:
- fixed and variable rates for new investment home loans to increase by 0.27% pa, effective Friday 31 July 2015
- variable rates for existing investment home loans to increase by 0.27% pa, effective Monday 10 August 2015.
Contact us
If you have any questions please don’t hesitate to contact me on 0437 498 800. From all market indications there will be more lenders to follow.
