Major Banks Boosted Interest Rates To Limit Investers Lending
Following the APRA guidelines to limit investors lending, Commonwealth Bank and ANZ have increased the interest rates for investor loans.
In an announcement CBA said that for variable rates loans, there will a hike of 27 basis points and for fixed rate loans the hike will be in between 0.1 to 0.4 percentage points. Means the variable rate loans will now be moved to 5.27% per annum, whereas fixed rate loan for four year will be 5.14% and for one year will it will be 4.94%. The bank is not making any change to its standard variable home loan rate for owner-occupiers.
If we talk about the hike in rates of ANZ, the variable rate loans got a hike of 27 basis points moving to 5.65%, whereas fixed rates loans got a hike of 30 basis points.
CBA’s head of retail banking services Matt Comyn said in a statement, “As Australia’s largest home lender, we support the prudential regulator’s actions to ensure lending practices remain sustainable and we have been actively managing our investment home loan portfolio to remain below the 10 per cent growth limit.Despite making a range of changes to our investor lending policies in the past few months we have witnessed ongoing investor lending growth and, at an industry level, investor lending approvals remain 22 per cent higher than 12 months ago”.
ANZ Chief Executive Officer Mark Whelan said in a statement, “The decision to raise interest rates for residential investment lending has been difficult but necessary in the current environment”.
The changes to CBA’s fixed rate loans will be in effect fro next Friday, and for variable rate loans, it will be in effect from 10, August, 2015 (Monday) – the same day as ANZ’s changes.
News Source: http://www.abc.net.au/news/2015-07-24/commonwealth-bank-raises-interest-rates-for-property-investors/6645612