Mutual lender Newcastle Permanent has removed the differential pricing between investment and owner occupied fixed rate home loans.
Effective Monday 25 January 2016, Newcastle Permanent’s investment home loan fixed rates will be dropped in line with its owner occupied home loan fixed rates.
This means investment rates will be cut by up to 30 basis points with fixed rates starting from 3.79% for a one-year fixed loan to 6.59% for a 10-year fixed home loan.
The mutual lender made the decision to remove the differential pricing after its actions to cool investment lending in line with APRA’s recommendations “proved very effective”.
Newcastle Permanent has also confirmed the establishment fee will continue to be waived for owner occupied home loans, however, the fee will continue to apply to investment home loans.