Lenders Announce Pricing Changes Outside the RBA Position

Mortgage

Several non-bank lenders have announced pricing changes to come into effect over the coming month.  Putting the blame squarely on the increased cost of funding, stating they can no longer absorb the costs and will need to do an out of cycle rate increase.

Today 13 July AMP have announced rate increase of 0.08 and 0.17% across their suite of residential loans affecting both owner occupiers and investors. On Monday 9 July, Macquarie Bank became the latest lender to reprice its home loans, announcing that owner-occupier variable rate loans with principal and interest repayments will increase by 0.06 of a percentage point, while those with interest-only repayments will increase by 0.10 of a percentage point across all LVR bands.

Investment and SMSF loans with variable rates will increase by 0.10 of a percentage point.

Macquarie will drop its three-year fixed rate by 10 basis points for all owner-occupier and investor loans.  The changes are effective from 13 July for new customers and 23 July for existing customers.

ING also flagged the need to increase rates by 10 basis points this week for variable owner-occupied mortgages.

The latest Deloitte Australian Mortgage Report 2018, released last week, found that the biggest challenge for non-majors is access to funding relative to the big four.

“We have seen that in the most recent fortnight, some of the non-majors have had to move their standard variable rate in response to movements in the underlying BBSW spread over cash,” Deloitte financial services partner James Hickey said.

“The majors have so far been able to absorb that and not pass on that movement. They may well move on it soon, but it just goes to show the heightened level of sensitivity the regional lenders have to wholesale funding markets.”

In news just in, Westpac and St George will cease all new lending to Self Managed Super Funds on 31stJuly 2018.  The removal of a key lender in the space is expected to have an effect on the interest rates charged by those lenders who remain in the space.

Our brokers are here to answer your questions and assist you to make the best decision possible for your circumstances.  Pricing increases, coupled with tightening borrowing guidelines, would suggest that many considering a mortgage should do so sooner rather than later.

Our team at Launch Money are available to discuss your borrowing capacity, provide some security around a pre-approval and help to get you started on your property journey.

To speak with a broker at Launch Money about a loan for your home or investment property, call our team on 1300 925 081.  Alternatively, you can email your questions to:  info@launchmoney.com.au

Jul, 17, 2018

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