Regional lender cuts investor rates

by Julia Corderoy17 Nov 2015
Intermediary-only lender Adelaide Bank has slashed investor home loan fixed rates by 25 basis points.

According to a pricing and policy update from Australian First Mortgage (AFM), the regional lender decreased its three, four and five-year investor fixed rates on its Flexible Option Loans, effective Thursday 12 November.

The new interest rates will apply for all investor loans, both full doc and lo doc.

On the other hand, however, specialist lender Pepper announced a range of interest rates increases across both owner-occupied and investment loans due to increased wholesale funding costs. 

AFM’s policy and pricing update reveals that effective Monday 16 November, Pepper’s specialist and near prime loan products have been increased by 10 basis points and its prime product has been increased by 20 basis points.    

Alongside these changes though, Pepper has also announced a new promotion reducing upfront Mortgage Risk Fees by 0.25%. According to the specialist lender, this will see savings in upfront fees of as much as $1,000 on a $400,000 loan. This offer is available from 16 November through to 31 January 2016.