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.
[Related: Lender launches frequent flyer offer for home loan customers]
CEO of AMP resigns with immediate effect
AMP chief executive Craig Meller has brought forward his resignat...
NAB backs remuneration structure but calls for ‘improvements’
The major bank has written to brokers highlighting that it suppor...
Total mortgage values rise in February
The total value of owner-occupier home loans increased in Februar...
The number one magazine for mortgage brokers
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
How would fees for service impact broking?
