Teachers Mutual Bank and its subsidiaries have announced a raft of rate hikes to their interest-only offerings, with some loans hiked by 50 basis points.
As of this week, Firefighters Mutual Bank, Teachers Mutual Bank and UniBank have increased interest rates on fixed (Solutions Plus) interest-only (IO) loan products by between 20 and 50 basis points. All rate changes apply to new business.
IO loans between $150,000 and $249,999 have grown by 0.30 per cent to 4.52 per cent p.a. for loans with loan-to-value ratios of 60 per cent or less; while for loans with LVRs between 60 per cent and 80 per cent, the new rate will be 4.54 per cent p.a.
Loan values between $250,000 and $499,999 have increased by 40 basis points. Clients making IO repayments on a loan with an LVR of less than or equal to 60 per cent will have a new rate of 4.49 per cent p.a., while those with an LVR of between 60 per cent and 80 per cent will have a new interest rate of 4.60 per cent p.a.
Clients with loans in the $500,000–$749,999 tier will see a rate increase of 50 basis points, to 4.57 per cent p.a. for LVRs of 60 per cent or less and 4.67 per cent p.a. for LVRs of 60 per cent to 80 per cent.
The same rate increase (0.50 per cent) also applies to customers with loans valued at $750,000 or more, with rates growing to 4.55 per cent p.a. for LVRs of 60 per cent or lower, and 4.65 per cent p.a. for LVRs of 60 per cent and 80 per cent p.a.
The Solutions Plus rate increase applies only to owner-occupier loans as the Solutions Plus loan is not available to investors. However, the IO rate increase on loans with a variable repayment structure applies to both owner-occupiers and investors, with an increase of 0.20 per cent p.a. to 5.66 per cent p.a.
Principal and interest repayments
At the same time, the mutual banks are cutting rates for new owner-occupier clients making principal and interest repayments on a Solutions Plus Home Loan between $250,000 and $499,999 where the LVR is 80-90 per cent. The new rate is 4.39 per cent p.a., reflecting a rate cut of 15 basis points.
[Related: Westpac cracks down on borrower expenses]
Mark Hewitt, general manager, industry and partnership development at Australian Finance Group (AFG) will commence as...
Following its launch of an early commission payment product to brokers using the effi platform, cash-flow solutions...
According to Grow Finance (Grow), David Keeling’s appointment, which commenced on 11 April, is part of a broader...
Most Talked About
Major bank CEO backs fees-for-service model
by Charbel KadibShadow treasurer says government has ‘got it wrong’ on trail
by Annie KaneOpen letter to CBA CEO Matt Comyn
by ReporterTreasury: Trail to be banned next year
by Annie KaneRemove trail, says final Productivity Commission report
by Reporter