Good news for investors as lenders reduce interest rates
In a trend that has emerged since the end of last year, January 2016 saw Australian home loan lenders continue to reduce the rate of investor premiums.
In 2015 APRA announced new restrictions that meant lenders were required to meet a maximum of 10% portfolio growth per annum for investors. This led to some of the big banks, including the major four of CommBank, Westpac, ANZ and NAB, increasing rates.
Other lenders, however, which have remained well within the 10% limit, have responded by cutting rates for investors throughout January. Mozo’s data showed six lenders reduced the premium payable by investors, while one removed the fixed rate premium entirely.
The latter Newcastle Permanent, lowered its fixed rates for investors to 3.79% for 1 year, 3.89% for 2 years, 3.99% for 3 years, and 4.29% for 5 years, while increasing rates for owner-occupier loans. The result was that investor and owner-occupier loans are now charged at the same rate.
RELATED: Newcastle Permanent reduces its investor fixed interest rates
Other changes included a 30bp reduction for 1, 3, 4 and 5 year loans from ME, as well as a reduction of 40bp on 2 year loan terms.
Suncorp cut its Home Package Plus 3 year fixed rate loans by 20bp, to a rate of 4.34% for investors (4.09% for owner-occupiers) and also introduced a special 4.42% variable rate for investors, (previously, the best investor package rate was 4.82%).
AMP Bank who cut investor lending completely for a period last year, is now not only lending to investors once again but has also cut both variable and fixed rates for investors, dropping its Basic Package variable rate by 40bp and fixed package rates by up to 58bp.
IMB Bank made smaller cuts, reducing the Essentials Home Loan variable rate by 5bps to 4.56% and the fixed rate platinum package for investors by 10bp for 1 year and by 20bp for 3 and 5 years.
Want to see what other great rate home loan packages are out there for investors? Check out our investment loan comparison table to compare deals today.
Home loan comparisons on Mozo - last updated January 16, 2021
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1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
Smart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
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2.34% p.a. variable
2.34% p.a.
UHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.34% p.a. variable
2.34% p.a.
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
Go to siteCompare2.19% p.a. variable
2.19% p.a.
Celebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Go to siteCompare2.04% p.a.
fixed 2 years2.79% p.a.
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Owner Occupier, LVR <80%, 300k+
2.04% p.a.
fixed 2 years2.79% p.a.
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Go to siteCompare2.09% p.a.
fixed 2 years2.56% p.a.
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
2.09% p.a.
fixed 2 years2.56% p.a.
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
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