Investors are making big moves in the housing market as they strike a year-long streak of increase in lending activity.

Investors are making big moves in the housing market as they strike a year-long streak of increase in lending activity.

Figures from the Australian Bureau of Statistics (ABS) showed a 1.1% growth in new investor loan commitments in October, pushing the investor segments share in overall lending to 33%.

In recent months, several banks have started raising their investor fixed rates in anticipation of a cash-rate hike that could potentially come as early as November next year.

CommBank and NAB made the most recent increases in fixed rates among the biggest lenders. Here are some of the highlights:

CommBank

CommBank rolled out another round of increases for its fixed rates, marking the second time they’ve done so in the last month. Here are some of the biggest changes:

  • Investment Fixed P&I 3 yrs – up by 60bps to 3.44% p.a. (4.82% p.a. comparison rate)
  • Investment Fixed IO 3 yrs – up by 40bps to 3.64% p.a. (4.88% p.a. comparison rate)
  • Investment Fixed P&I 5 yrs – up by 30bps to 3.64% p.a. (4.66% p.a. comparison rate)
  • Investment Fixed IO 5 yrs – up by 40bps to 3.64% p.a. (4.67% p.a. comparison rate)

The increases also apply to investor fixed rates under the Wealth Package product.

NAB

Following its similar move in late October, NAB increased its investor fixed rates under the Tailored Home Loan and Choice Package products. The following are the most significant increases:

  • Inv Tailored Fixed – IO in arrears 5 yrs – up by 50bps to 3.89% p.a. (4.75% p.a. comparison rate)
  • Inv Tailored Fixed – P&I 3 yrs – up by 40bps to 3.49% p.a. (4.82% p.a. comparison rate)
  • Choice Package Inv Tailored Fixed – P&I 3 yrs 150k+ – up by 40bps to 3.39% p.a. (4.62% p.a. comparison rate)
  • Choice Package Inv Tailored Fixed – IO in arrears 5 yrs 150k+ – up by 50bps to 3.79% p.a. (4.59% p.a. comparison rate)

Other banks and lenders

These lenders also made big changes in their investor rates over the past week:

86 400

  • Investment Own Home Loan IO 60-70% – down by 30bps to 2.59% p.a. (2.70% p.a. comparison rate)
  • Investment Own Home Loan P&I 70-80% – down by 20bps to 2.59% p.a. (2.87% p.a. comparison rate)
  • Investment Neat Home Loan P&I 70-80% – down by 25bps to 2.34% p.a. (2.35% p.a. comparison rate)

Heritage Bank

  • Investment Fixed P&I 5 yrs – up by 30bps to 3.39% p.a. (4.51% p.a. comparison rate)
  • Home Advantage Investment Variable IO 80-90% 150-249k – down by 54bps to 3.14% p.a. (3.49% p.a. comparison rate)
  • Investment Discount Variable P&I 150k+ 80-90% – down by 50bps to 2.69% p.a. (2.74% p.a. comparison rate)

bcu

  • Investment Fixed P&I 1 yr – up by 20bps to 2.39% p.a. (4.05% p.a. comparison rate)
  • Investment Fixed P&I 4 yrs – up by 20bps to 2.99% p.a. (3.81% p.a. comparison rate)

ING

  • Investment Fixed P&I 2 yrs – up by 20bps to 2.69% p.a. (4.42% p.a. comparison rate)
  • Investment Fixed P&I 3 yrs – up by 20bps to 3.09% p.a. (4.35% p.a. comparison rate)
  • Investment Fixed P&I 5 yrs – up by 20bps to 2.59% p.a. (4.31% p.a. comparison rate)

Photo by Adeolu Eletu on Unsplash.


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