Virgin Money raises IO rates for new loans

staff reporter Friday, 16 Jun 2017 1 minute read

The challenger brand has announced that it has increased the variable interest rates for owner-occupiers and investors taking out a new Reward Me Home Loan with interest-only repayments.

Effective from today (16 June), owner-occupiers borrowing between $75,000 and $499,999, with a loan-to-value ratio (LVR) of less or equal to 70 per cent, and making interest-only (IO) repayments on a new Reward Me Home Loan will pay 4.14 per cent per annum. This constitutes a 25 basis point increase.

A 25-basis point increase also applies to owner-occupier IO loans with the same LVRs for borrowings of between $500,000 and $749,000 (to 4.09 per cent), and for those borrowing more than $750,000 (to 4.04 per cent).

Investors taking out IO Reward Me Home Loans will, from today, be subject to the same level of rate hike.

Those borrowing between $75,000 and $499,999, with an LVR of less or equal to 80 per cent, will pay 4.44 per cent per annum, while investors with the same LVRs but paying between $500,000 and $749,999 will have repayments set at 4.39 per cent.

Investors borrowing more than $750,000 with an LVR of less or equal to 80 per cent will from today have repayments of 4.34 per cent per annum.