Investment Lending Changes August 2015

  • 17 August 2015

    Investment Lending Changes August 2015

    In December 2014, the Australian Prudential Regulation Authority (APRA) announced a set of measures designed to ensure residential mortgage underwriting standards remain prudent, and to curb growth in investment lending to 10% per year.

    As a result of these measures, the bank has made product and policy changes to Investment Home Loans1 effective 17 August 2015. 
    There are 3 changes as follows:

    1. Loan Servicing – the Bank has made changes to the method we use to calculate a member’s ability to service the loan. 
    2. Maximum Loan-to-Value Ratio (LVR) – for investment home loans, the LVR cannot exceed 85% before the capitalisation of the LMI premium.

      There is no change for owner occupied home loans at a maximum of 95% LVR with LMI or for the My First Home Loan product a maximum of 98% LVR with LMI.
    3. Solutions Plus Home Loan Interest rate tier structure – for investment home loans, the removal of the 4th rate tier ($750,000+), and altering the 3rd rate tier to $500,000+ (previously $500,000 - $749,999) Refer to the table below for details.

      There are no changes to the Solutions Plus Home Loan interest rate tiers for owner occupiers.

    Solutions Plus Interest rate tier structure valid as at 17 August 2015:

    Owner Occupiers Investors
    Solutions Plus Home Loan tiers  Interest Rate1 p.a  Comparison Rate p.a*  Solutions Plus Home Loan tiers Interest Rate1 p.a  Comparison Rate p.a*
    $150,000 - $249,999 4.77% 5.02% $150,000 - $249,999 4.77% 5.02%
    $250,000 - $499,999 4.57%
    		 4.82%
    		 $250,000 - $499,999
    		 4.57%
    		 4.82%
    $500,000 – $749,999
    		 4.54%
    		 4.79%
    		 $500,000+
    		 4.54%
    		 4.79%
    $750,000+
    		 4.47%
    		 4.72%
    		 - -  - 

    For more information about our investment home loans please contact us on 1800 864 864.

    *WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate quoted is based on $150,000 for a term of 25 years. Rates apply to secured loans only. 

    1. Fees and charges and lending criteria apply. Consumer lending terms and conditions available here or from any of our offices. Interest rates effective 17 August 2015. Rates quoted and all rates subject to change. Any advice provided here does not take into consideration your objectives, financial situation, or needs, which you should consider before acting on any recommendations. For further information call 1800 864 864 or go to unibank.com.au

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