Tasmanian-based non major MyState has announced a series of changes to its residential investment lending policies.
Effective from yesterday for new lending and from 28 June for existing lending, the bank has increased its rates for residential investors by:
- 25 basis points for its Variable Rate Residential Investment Loan
- 10 basis points on its 1, 2, 3 and 5 year fixed Residential Investment Loans
These changes will affect new and pipeline customers with loans contracted on or after 21 June.
All other interest rates remain unchanged.
MyState has also announced changes to its residential investment LVR. Effective from yesterday (21 June), the bank has reduced the maximum LVR for investor property loans to 50%.
This will allow MyState to manage its investor portfolio responsibly and is in response to new regulatory requirements, the bank’s head of broker
Paul Herbert said in a note sent out to brokers on Tuesday (20 June).
The change applies to all new residential investment loans.
Finally, MyState will bring in additional fees for specific loan applications including a:
- $200 Additional Valuation Fee (charged for each additional security)
- $200 Company/Trust Fee (charged when a borrower is a company or trust or acting as a trustee for a trust)
The fees will affect new lending applications from 28 June and have been brought in to reflect additional cost and time or establishment, Herbert said.
Related stories:
Major raises IO rates by 34 basis points
Non-major raises investor rates
Banks tighten purse on first home buyers
