Following AMP’s decision to reduce LVRs on investor loans, a second challenger bank has this week announced significant lending changes.
In a note to brokers, MyState announced changes to residential investment rates, LVRs and lending fees and charges.
“In order to manage our investor portfolio responsibly and align with regulatory requirements, the maximum LVR for all new investor property loans will reduce to 50 per cent from 21 June 2017,” the bank said. “This change applies to all new residential investment loans.
“MyState routinely reviews interest rates on both fixed and variable rate loans, taking into account market conditions.”
For new borrowers, MyState’s variable rate residential investment loan will increase by 0.25 per cent. One, two, three and five-year fixed residential investment loans will increase by 0.10 per cent.
“The rate increases will affect new and pipeline customers where the loan is contracted on or after Wednesday, 21 June 2017,” the bank said.
Interest rates for existing variable residential investment loans will increase by 0.25 per cent effective 28 June 2017.
“We will be communicating with affected customers directly. All other rates remain unchanged,” the bank said.
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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