A big four bank has increased its fixed home loan rates for new residential investor borrowers.
New loan accounts for NAB’s fixed investor mortgages have now changed so that 1 year Package Fixed Rate for residential investment home loans (principal and interest repayments) has increased to 4.29 per cent per annum (p.a); 1 year Package Fixed Rate for interest-only residential investment home loans has changed to 4.39 per cent p.a; and fixed rates for all other interest-only owner-occupier and residential investment home loans have increased by 0.10 per cent p.a.
A NAB spokesperson commented that the changes in regulation, such as APRA’s recent crackdown on interest-only loans, have had an impact on its rates.
“We are operating within a dynamic financial, economic and regulatory environment, and it’s important that we regularly review our pricing and policy measures across all of our home loan products to ensure we continue to lend responsibly,” the spokesperson said.
The rate changes came into effect on 7 April.
The recent focus on investor loans, specifically interest-only loans, have resulted in many lenders increasing rates in recent weeks, with Credit Union Australia announcing last week that it would temporarily pause accepting applications for investor lending until further notice in a bid to remain under the speed limits implemented.