Following the Big Four’s mortgage rate hikes, several smaller lenders have also lifted their mortgage rates, particularly on the investment lending side of their ledgers.
Last Thursday, Melbourne-based ME Bank announced it would increase its investor home loan reference rates by 25 basis points, effective 27 April. The move will affect new and existing investor borrowers, and will put ME Bank’s standard variable rate for investor borrowers at 5.28% per annum.
The bank said the change was made to address increasing regulatory and compliance costs, and would ensure the bank remains within the investor lending growth limits set by APRA.
“ME periodically reviews rates to ensure a well-balanced loan book and has recently seen demand rise after investor-rate increases by other banks,” the bank said in an official statement.
ME Bank will not increase the reference rate for any owner-occupier home loans and continues to offer a highly competitive standard variable rate to owner occupiers at 5.03% per annum. The bank also offers one of the lowest owner-occupier home loan rates in the market, with a rate of 3.89% per annum for loans within a member package between $400,000 and $700,000, and with an LVR equal to or lower than 80%.
Sydney-based ING Direct announced it would increase the standard variable rate on two of its investor home loan products by 0.25% on Tuesday. The bank’s standard variable rate on the Orange Advantage home loan for investors will move to 5.42%, while the standard variable rate on the Mortgage Simplifier home loan for investors will be 5.32% at the new rate.
Collections: Mortgage News