ME today announced it will increase its investor home loan reference rates by 25 basis points, effective 27 April 2017.
The move will affect new and existing investor borrowers and will put ME’s standard variable rate for investor borrowers at 5.28% p.a.
The bank said the change was made to address increasing regulatory and compliance costs and to ensure the bank remains within investor lending growth limits.
ME periodically reviews rates to ensure a well-balanced loan book and has recently seen demand rise after investor-rate increases by other banks.
The bank said it will not increase the reference rate for any owner-occupier home loans and continues to offer a highly competitive standard variable rate for owner-occupiers at 5.03% p.a.
The bank is offering one of the lowest owner-occupier home loan rates in the market with a rate of 3.89% p.a. for loans within a member package between $400,000-$700,000 and with a Loan to Value Ratio equal to or lower than 80%.