Teachers Mutual Bank has announced that it is withdrawing from the investor lending market, as well as revealing new fixed rates for owner-occupiers.
The bank said in a statement that it is temporarily withdrawing from new investment home loans in an attempt to curb its success in the sector and be in line with APRA’s annual investor growth cap of 10 per cent.
“The strong demand from our membership base has meant our investment home loan growth has not slowed in line with our expectations, despite the bank applying a number of micro-policy and pricing disincentives during 2016,” Teachers Mutual CEO Steve James said.
“In any other context, the strong demand for our investment loan products would be very pleasing, but we take our responsibilities to the regulator extremely seriously, so we have proactively made the decision to temporarily withdraw from investment home lending to new business, effective Wednesday 25 May 2016.”
To coincide with its investor lending change, Teachers Mutual has revealed new fixed rates for its Teachers Fixed Option Home Loan.
The bank’s three-year fixed rate has been reduced by 25 basis points to 3.74 per cent (with a 4.88 per cent comparison rate), while its four and five-year rates have been cut by 35 basis points to 3.99 per cent (with a comparison rate of 4.85 per cent and 4.77 per cent respectively).