Posted Wednesday, 14 October 2015 at 10:39 by Shape Home Loans
Tagged: interest rates | Investors | First home buyer | Low Doc loans | Loan for doctors | APRA lending laws | Loan for investor | Loan for owners occupier
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Westpac announced effective 20th November 2015, the rates for owners occupier and investment loans will both increase by 0.20%.
Headline owner occupier home loan variable rates increased by 20 basis points per annum to 5.68 per cent (comparison rate 5.82 per cent) before any discounts.
Headline residential investment property variable rates increased by 20 basis points per annum to 5.95 per cent (comparison rate 6.09 per cent) before any discounts.
You must be wondering " did the RBA increase the rate?" the answer is no.
The reasons for the sudden increase in rate by Westpac is to meet the APRA's ( The lending and regulatory authority of Australia) minimum capital guidelines that has been set for December. Back in June - August, most banks increase the rate by 0.25%- 0.44% for investment loans only, however today Westpac is the first bank to increase the rate for owners occupier ( Note Westpac already increase the rate for investors by 0.27% in August)