the adviser logo

Auswide hikes rates by 40bps

by Lucy Dean1 minute read
Auswide Bank

A Queensland-based bank has announced a 40 basis point increase to its investment products, citing a need to ensure that investment lending growth is “responsible”.

The Auswide Bank changes come into effect 23 August and apply to new fixed rate investment lending. As such, the new rates for loans without the bank’s Freedom Package start at 4.89 per cent per annum (p.a.) for three-year fixed rate loan terms and rise to 5.19 per cent p.a. for five-year fixed rate loan terms.

To continue reading the rest of this article, create a free account
Already have an account? Sign in

Home Loan Plus loans with the Freedom Package start at 4.79 per cent p.a. for two and three-year fixed rate loan terms and climb to 5.09 per cent p.a. for five-year fixed rate loan terms.

Additionally, Auswide has advised that all new investment lending will need to sit below a maximum loan-to-value ratio of 80 per cent.

Banks’ repricing of loans has become a regular occurrence following a May directive by the Australian Prudential Regulation Authority (APRA) instructing lenders to keep new interest-only lending to below 30 per cent and slow the growth of banks’ investor lending portfolios to at most 10 per cent per quarter.

[Related: Macquarie changes new variable and fixed rates]

Auswide hikes rates by 40bps
auswide bank
TheAdviser logo
auswide bank


You need to be a member to post comments. Register for free today


Anja Pannek CEO PLAN

Anja Pannek named MFAA CEO

The board of the Mortgage & Finance Association of Australia (MFAA) has confirmed that Anja Pannek will be the...

mike felton mfaa ta jdayl5

Aggregator heads reflect on Mike Felton’s legacy

Following on the news that Mike Felton is to retire next month and step down as chief executive of the Mortgage &...

melanie kiely afg ta mzh8zm

AFG non-executive director steps down from board

Australian Finance Group Ltd (AFG) has advised that Melanie Kiely will be stepping down from the AFG board to...

Read the latest issue of The Adviser magazine!
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
Read more