A Queensland-based lender is set to increase both fixed and variable rates for investors, reflecting crackdowns on investor lending by Australian regulatory bodies.
Suncorp Bank has announced that, effective 3 July, standard variable rates for investment home loans will rise by 12 basis points per annum (p.a.) for both new and existing customers.
The standard variable rate for investment loans will be 5.99 per cent p.a.
The same rate increase will apply to one- and two-year fixed rate investment loans, which will come with an interest rate of 4.36 per cent p.a. and 4.46 per cent p.a., respectively.
The increase on fixed rate loans will impact only new customers.
The move is the latest in a succession of credit policy changes made by lenders since the Australian Prudential Regulation Authority told banks to limit the flow of new interest-only lending to 30 per cent.
The bank commented that the changes “reflect regulatory requirements to moderate investor home loan growth and reinforces [its] commitment to responsible lending”.
Meanwhile, two- and three-year owner-occupier fixed rate loans will see a drop of 10 basis points to 3.94 per cent p.a.
Borrowers will receive the rate set on the day of settlement unless they have paid Suncorp’s guaranteed rate fee of either $600 or 0.15 per cent of the loan value.
[Related: Non-major bank changes IO credit policy]
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