(Australian Associated Press)
WHAT THE BANKS HAVE DONE TO SLOW INVESTOR HOUSING LENDING
AMP
* No new investor property loans until later in 2015
* 47 basis point lift in variable rate on existing investor property loans
* Also applies to already-approved applications
* Cut variable rate for new owner occupied loans on AMP Bank Professional Package to as low as 4.12 pct (from 4.35 pct)
* Its mortgage book comprises less than 1 pct of Australia’s overall mortgage market
* APRA figures show AMP Bank’s housing investment loan book worth $2.92 billion
ANZ
* 27 bps rise in variable residential investment property rate (to 5.65 pct)
* Up to 40 bps cut in fixed rates for new owner-occupied home lending
* Other measures for residential investors:
– Reduced rate discounts
– Deposit required increased to at least 10 pct
– Increased interest rate sensitivity buffers
COMMONWEALTH BANK
* 27 bps lift in standard variable rate on investor home loan (to 5.72 pct)
* Fixed investor home loan rates up 10-40 bps
* Up to 30 bps cut in fixed rate owner occupied loans
MACQUARIE
* Increased rates for investment home loans by 27 bps
NAB
* 29 bps lift in variable rates on interest-only home loans, line of credit facilities
WESTPAC
* Rates remain under review
* Currently doesn’t charge different rates for investors and owner-occupiers
* Largest lender to landlords
* APRA figures show Westpac’s investor home loan portfolio worth $150.87 billion
SOME OF THE BANKS’ OTHER RECENT INVESTOR LOAN CHANGES:
* Reducing/removing rate discount for new investors
* Tougher loan-to-valuation ratios for investor loans
– 80 pct LVR cap by some lenders
– Means new property investors need at least 20 pct deposit
* Increased floor rates
– Is rate against which borrowers have to prove can still make repayments
– Most lenders have floor rate 7 pct or above
* Changes to servicing calculations
– Some restricted which income is assessed in affordability calculations
– Some increased living expenses part of serviceability calculations.
