ME today, 27 August 2015, announced changes to its variable and fixed home loan interest rates for investor and selected owner occupied loans.
Effective 15 September 2015 ME’s Basic Variable home loan interest rate for new investor borrowers will rise by 0.40% to 4.69% p.a. and its Flexible home loan with member package interest rate for new investor borrowers will increase by 0.36% to 4.89% p.a. Rates across existing investor loans will also rise by 0.41%.
Fixed rates for new owner occupied borrowers will fall between 0.09% and 0.50% across its 3 to 7 year terms, including its 3-year fixed rate falling 0.09% to 4.19% p.a.
ME CEO, Jamie McPhee, said the changes have been precipitated by a major changes in the banking industry which have forced banks including ME to review their lending practices and pricing. APRA introduced new regulatory measures to reinforce sound residential lending practices last December, including actions to restrict investor lending growth to no more than 10% p.a.
“The changes we have announced today will advantage owner occupied borrowers particularly those seeking to buy their first home,” McPhee said.
“The decision to increase investment rates was a difficult one, but after careful consideration we believe that combined with rate cuts across selected owner occupied home loans it strikes the right balance across our portfolio.”
To find out more visit the ME website.