Investors make big moves in the housing market as they strike a year-long series of increases in lending.

Figures from the Australian Bureau of Statistics (ABS) showed a 1.1% growth in new investor loan commitments in October, pushing investor segments’ share of total lending to 33%.

In recent months, several banks have begun raising their fixed interest rates for investors in anticipation of a cash interest rate hike that may already be in place in the past few months. November next year.

CommBank and NAB have made the most recent flat rate increases with the largest lenders. Here are some of the highlights:

CommBank

CommBank made another round of increases to its flat rates, the second time they have done so in the past month. Here are some of the biggest changes:

  • Investment Fixed P&I 3 yrs – increased by 60bp to 3.44% pa (4.82% pa comparison rate)
  • Investment Fixed IDE 3 yrs – increased by 40bp to 3.64% pa (4.88% pa comparison rate)
  • Investment Fixed P&I 5 years – increased by 30bp to 3.64% pa (4.66% pa comparison rate)
  • Investment Fixed IDE 5 years – increased by 40bp to 3.64% pa (4.67% pa comparison rate)

The increases also apply to the fixed interest rates for investors under the Wealth Package product.

NAB

Following a similar move in late October, NAB increased fixed interest rates for investors under its Tailored Home Loan and Choice Package products. Here are the main increases:

  • Inv Tailored Fixed – IDE 5 years behind schedule – increased by 50bp to 3.89% pa (4.75% pa comparison rate)
  • Inv Custom fixed – P&I 3 years – increased 40 basis points to 3.49% pa (4.82% pa comparison rate)
  • Choice Package Inv Op Maat Fixed – P&I 3 yr 150k+ – increased by 40 bp to 3.39% pa (4.62% pa comparison rate)
  • Optional package Inv Opmaat Vast – IDE in arrears 5 years 150k+ – increased by 50bp to 3.79% pa (comparison rate of 4.59% pa)

Other banks and lenders

These lenders have also made major changes to their investor rates in the past week:

86 400

  • Investment Own Home Loan IO 60-70% – decreased by 30 basis points to 2.59% per year (2.70% per year comparison rate)
  • Investment Own Home Loan P&I 70-80% – decreased by 20bp to 2.59% pa (2.87% pa comparison rate)
  • Investment Neat Home Loan P&I 70-80% – decreased by 25 basis points to 2.34% per year (2.35% per year comparison rate)

Heritage bank

  • Investment Fixed P&I 5 years – increased by 30bp to 3.39% pa (comparison rate of 4.51% pa)
  • Home Benefit Investment Variable IO 80-90% 150-249k – decreased by 54 basis points to 3.14% per annum (comparison rate of 3.49% per annum)
  • Investment discount Variable P&I 150k+ 80-90% – decreased by 50 basis points to 2.69% per annum (2.74% per annum comparison rate)

bcu

  • Investment Fixed P&I 1 yr – increased by 20bp to 2.39% pa (4.05% pa comparison rate)
  • Investment Fixed P&I 4 yrs – increased by 20bp to 2.99% pa (comparison rate of 3.81% pa)

ING

  • Investment Fixed P&I 2 years – increased by 20bp to 2.69% pa (4.42% pa comparison rate)
  • Investment Fixed P&I 3 years – increased 20bps to 3.09% pa (4.35% pa comparison rate)
  • Investment Fixed P&I 5 years – increased by 20bp to 2.59% pa (4.31% pa comparison rate)

Photo by Adeolu Eletu on Unsplash.

Top suburbs: south brisbane, newtown, bendigo, tweed heads south, alexandra hills

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