Advantedge Financial Services has announced changes to its home lending policies, in the wake of APRA’s crackdown to enforce prudent and sustainable lending.
Effective Thursday 4 June 2015, the variable and fixed interest rates for new and top up investment purpose loans will increase by 15bps.
The maximum LVR (including LMI capitalisation) for investment purpose loans will be reduced to 90%, effective Saturday 13 June 2015.
A serviceability repayment buffer will be applied to existing mortgage repayments as part of the serviceability assessment, also from Saturday 13 June 2015.
Finally, customers will need to provide evidence of existing loan repayments, effective Saturday 13 June 2015.
“Australia currently has record low interest rates,” Brett Halliwell, general manager of Advantedge Distribution said.
“This environment has helped to drive significant growth in the investor housing market and it’s important for us and the industry to ensure growth is sustainable. This is why we have made these changes to our home lending policies.”
The announcement follows a series of price reductions across Advantedge products in 2015 to discount rates for new full-doc variable rate loans.
“We have been extremely proactive in the market for owner occupier lending, with the special offer that we commenced on 11 May still available until 31 July, providing a headline variable rate of 4.13% p.a. on full-doc loans to 80% LVR. We have been pleased with the sales volumes from this campaign to date, with many brokers commenting on the consistency of service provided by our operations team,” Halliwell said.
“We are confident that brokers throughout the industry will continue to embrace the competitive rates available under this special offer by recommending our private-label products to their owner occupier clients.”