Investment Lending Changes October 2015

  • 6 October 2015

    Investment Lending Changes October 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%.

    In addition to the changes announced in August as part of our ongoing effort to support these measures, the Bank has made further product and policy changes to Investment Home Loans1 effective 6th October. The changes apply to new loan applications, as follows:

    Solutions Plus Home Loan Interest rate tier structure – Removal of the 2nd, 3rd & 4th rate tiers, and altering the 1st rate tier to $150,000+ for new investment home loans only. This change applies to both principal and interest, and interest only investment home loans. 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 6th October 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 + 4.77% 5.02%
    $250,000 - $499,999 4.57%
    		 4.82%
    		 -
    		 -
    		 -
    $500,000 – $749,999
    		 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.

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