Investors are making big moves in the housing market as they record a streak of one-year increase in lending activity.
Figures from the Australian Bureau of Statistics (ABS) showed 1.1% growth in new investor loan commitments in October, raising the share of investor segments in overall loans at 33%.
Over the past several months, several banks have started raising their fixed rates for investors in anticipation of a cash rate hike that could potentially occur as early as November of next year.
CommBank and NAB made the most recent fixed rate increases among the largest lenders. Here are some of the highlights:
CommBank
CommBank rolled out another round of hikes to its fixed rates, marking the second time they have done so in the past month. Here are some of the more significant changes:
Investment Fixed P&I 3 years – up 60 basis points to 3.44% per annum. (comparison rate of 4.82% per year)
Investment Fixed IO 3 years – up 40 basis points to 3.64% per annum. (comparison rate 4.88% p.a.)
Investment Fixed P&I 5 years – up 30 basis points to 3.64% per annum. (comparison rate 4.66% per year)
Investment Fixed IO 5 years – up 40 basis points to 3.64% per annum. (comparison rate 4.67% per year)
The increases also apply to fixed rates for investors as part of the Wealth Package product.
NAB
Following its similar decision at the end of October, NAB increased its fixed rates for investors under the Tailored Home Loan and Choice Package products. The most significant increases are as follows:
Inv Tailored Fixed – 5 year overdue IO – up 50 basis points to 3.89% p.a. (compare rate 4.75% p.a.)
Inv Tailored Fixed – P&I 3 years – up 40 basis points to 3.49% p.a. (compare rate of 4.82% p.a.)
Choice Package Inv Tailored Fixed – P&I 3 years 150k + – up 40bps to 3.39% p.a. (compare rate 4.62% p.a.)
Choice Package Inv Tailored Fixed – Overdue IO 5 years 150k + – up 50bps to 3.79% p.a. (compare rate 4.59% p.a.)
Other banks and lenders
These lenders have also made significant changes to their investment rates over the past week:
86,400
Investment Own Home Loan IO 60-70% – down from 30bps to 2.59% p.a. (compare rate of 2.70% p.a.)
Investment Home Loan P&I at 70-80% – down 20 basis points to 2.59% p.a. (benchmark rate of 2.87% p.a.)
Investment Neat Home Loan P&I 70-80% – down 25bp to 2.34% p.a. (compare rate of 2.35% p.a.)
Heritage bank
Investment Fixed P&I 5 years – up 30 basis points to 3.39% per annum. (comparison rate 4.51% p.a.)
Home Advantage IO Investment Variable 80-90% 150-249k – down from 54bps to 3.14% p.a. (compare rate 3.49% p.a.)
Investment Discount Variable P&I 150k + 80-90% – down from 50bps to 2.69% p.a. (comparison rate of 2.74% p.a.)
bcu
Fixed 1 year P&I investment – up 20bp to 2.39% p.a. (comparison rate 4.05% p.a.)
Investment Fixed P&I 4 years – up 20 basis points to 2.99% p.a. (comparison rate of 3.81% p.a.)
FR
Investment Fixed P&I 2 years – up 20bp to 2.69% per annum. (comparison rate 4.42% p.a.)
Investment Fixed P&I 3 years – up 20bp to 3.09% per annum. (comparison rate of 4.35% per year)
5-year fixed P&I investment – up 20bp to 2.59% p.a. (comparison rate 4.31% p.a.)
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Photo by Adeolu Eletu on Unsplash.
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