A CBA subsidiary bank has announced a 30 basis point cut to rates for new interest-only and principal and interest investor lending.
Effective immediately (1 September), Bankwest has reduced variable interest rates for new IO investor lending with loan-to-value ratios (LVR) of below 80 per cent.
The new IO rate on the Complete Variable Home Loan is 4.84 per cent per annum (p.a.), reflecting a reduction of 30 basis points, and the new rate on the Premium Select Home Loan is 4.94 per cent p.a.
New investor loans with P&I repayment structures will also see a 30 basis point cut, provided that the LVR is below 90 per cent.
The standard P&I rate for the Complete Variable Home Loan is now 4.59 per cent p.a. while the new standard rate for the Premium Select Home Loan is 4.69 per cent p.a.
Bankwest said that acquisition specials will remain in place for Complete Variable and Premium Select.
Following, the P&I rates will “apply to transfers/increases only”. Additionally, the IO rates will apply only to applications submitted on or after 1 September.
Bankwest's moves are in sharp contrast to Heritage Bank's announcement today (1 September) that it would temporarily halt investment lending.
Heritage said: "Heritage has experienced a sharp increase in the proportion of investment lending in our new approvals. That’s a result both of our attractive pricing structure and the actions of competitors in the marketplace.
“We need to manage our investment lending portfolio carefully to ensure we stay within the caps APRA has placed on growth in investor and interest-only lending."
[Related: Bankwest throws support behind brokers]
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