MyState Bank has cut its owner-occupied three-year fixed home loan rate by 75 basis points for loans with more than 80% to 90% LVR as it seeks to provide brokers with competitive products.
The Tasmania-based bank has also dropped its three-year residential investor rate by 60 basis points for loans with LVR equal to or less than 80%, and its other fixed-rate loans by 15 to 40 basis points.
MyState group executive of broker distribution, Huw Bough
, said the bank has been following a conservative approach the past few months as it has seen house prices in key metropolitan markets weaken.
“Now the market is less heated, we have greater capacity for further growth of our loan book. Our focus is on high credit quality rather than growth for the sake of growth,” he said.
Besides the cuts in fixed rates, the bank has dropped its variable residential investment loan rates by 20 basis points.
MyState has been diversifying its loan business outside Tasmania through brokers. The number of its broker originated loans grew 40% during FY17, with 73% of its home loans through the third-party channel coming from brokers, according to the bank’s financial results released last August.
APRA's latest banking statistics for November 2017 shows that MyState's key home loan portfolio grew at less than 1% for the five months since 30 June 2017.
Bank fails to gain enough broker traction
Non-major drops fixed rates by 30 bps
MyState grows broker loans by 40%