Banks and non-bank lenders are responding to regulatory restrictions on lending growth by tightening rules and introducing new fees.

MyState Limited

Hobart-based MyState Limited has increased rates for borrowers and imposed a 12-basis point margin on all variable and fixed rates for owner-occupied and residential investment loans.

Melos Sulicich, chief executive officer at MyState, said the financial group was raising rates to prevent strong borrowing growth from breaching the Australian Prudential Regulation Authority’s 10% speed limit.

“[The 10% speed limit] is a relatively blunt instrument that impacts different lenders in different ways because of their pre-existing book,” Sulicich told the Australian Financial Review. “It does not allow the market to change fluidly – but it is what it is.”

MyState’s loan book comprised 86% owner-occupied lending and 14% investor loans at the end of 2016, according to the financial group’s records.


In response to CBA increasing rates and tightening terms and conditions for property investment lenders, Australia and New Zealand Banking Group (ANZ) responded with new offers to mortgage brokers and borrowers, assuring them that were keen to pick up new business.

However, ANZ is eliminating a popular loophole which allowed borrowers to switch from investor loan rates to cheaper owner-occupier rates. Beginning this week, borrowers changing their investment loan to a home loan will need to provide supporting documentation proving that the property isn’t being used for investment purposes.


Westpac is restructuring its flagship Premier Advantage Package to include only home loan, transaction account, and general insurance benefits. As a result, some features – such as the BT margin loans and some insurance benefits – will be removed.

The package’s $395 annual fee has not been lifted.