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Home loan rate wrap: MyState, The Rock, G&C Mutual and more adjust rates

Canstar saw a handful of lenders change rates on a range of home loans for owner occupiers last week, while one investment home loan experienced a significant rate cut of 90 basis points. As for this week, homeowners and the broader industry will be watching out for key housing data and news from APRA.

home loan rate wrap

G&C Mutual Bank increases rates on owner occupier home loans

G&C Mutual Bank increased rates on a number of its fixed rate owner occupier home loan products with interest-only (IO) repayments last week.

The largest increase was made to its ‘Residential 1yr Fixed IO 1yr’ home loan, which rose by 35 basis points to 4.39% (*comparison rate 4.41%).

Meanwhile, MyState and its central Queensland division The Rock decreased some fixed interest rate home loan products for owner occupiers by 9 basis points.

Australian Military Bank also slightly decreased the variable interest rate on its ‘Standard Variable Offset 80%’ home loan by 2 basis points, down to a rate of 4.67% (*comparison rate 4.73%).

New owner occupier home loan rates

Principal & interest

The table below shows owner occupier home loans with principal and interest (P&I) repayments that experienced an adjusted rate between 03/07/18 and 09/07/18.

Rates based on owner-occupier home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by provider name (alphabetically).

Interest only

The table below shows owner occupier home loans with interest only (IO) repayments that experienced an adjusted rate between 03/07/18 and 09/07/18.

Rates based on owner-occupier home loans available for a loan amount of $350,000 at 80% LVR (interest only). Table sorted by provider name (alphabetically).

Few movements on investment home loans

Last week was quiet for investment home loan rate movements, as Canstar saw only one lender move rates.

Financial institution for Defence personnel and their families, Australian Military Bank, made a cut of 90 basis points to its ‘Investment Home Loan PI’ (principal and interest repayments).

The investment home loan now has a variable interest rate of 4.30% (*comparison rate of 4.45%).

New investment home loan rate

Principal & interest

The table below shows investment home loans with principal and interest (P&I) repayments that experienced an adjusted rate between 03/07/18 and 09/07/18.

Rates based on variable investment home loans available for a loan amount of $350,000 at 80% LVR (principal & interest). Table sorted by provider name (alphabetically).

Homeowners and housing industry: APRA speech to watch

APRA’s Chairman Wayne Byres is set to deliver a speech about the regulator’s latest views on the mortgage lending market, the health of bank balance sheets and its regulatory and supervisory strategies at the Australian Business Economists lunch in Sydney on Wednesday.

Analysts from investment bank UBS expect homeowners and other market participants to pay close attention to Mr Byres’ address, given APRA’s ongoing focus on responsible lending and tightening of mortgage underwriting standards during a time of relatively low interest rates and high household debt.

Some of the key topics UBS analysts Jonathan Mott, Rachel Finn and Karyn Cao expect Mr Byres to address include:

  • Responsible lending and moving towards banks having to verify living expenses as part of the loan application process, including assessing deposits and credit card spending.
  • APRA’s view of what are appropriate internal policy limits for “very high” debt-to-income ratios.
  • The impact of the launch of Comprehensive Credit Reporting on debt-to-income ratios.
  • The quality of bank balance sheets.
  • The potential for macro-prudential policies (such as the limits on interest-only and investor lending) to unwind should credit growth to households slow sharply or even contract (‘credit crunch’).

The Australian Bureau of Statistics (ABS) will also release updated housing finance data on Wednesday, which some experts may watch for evidence of whether APRA’s crackdown on irresponsible mortgage lending has continued.

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