A number of loan changes have been announced with non-bank lender Homeloans and second tier bank Teachers Mutual Bank both bringing in adjustments to their mortgage products.
Homeloans
Homeloans has introduced the new Accelerate Red PLUS product for investment and interest only loans. Accelerate Red is a near-prime product designed for borrowers who do not meet strict scoring criteria yet have a history of managing their debts well.
Rates for Accelerate Red start at 5.29% p.a. (comparison rate 5.58% p.a.) while those for Accelerate Red PLUS for investors start at 5.44% p.a. (comparison rate 5.85% p.a.).
This brings the Accelerate Red product in line with the lender’s other products which already had PLUS versions for investor and/or interest only borrowers.
The lender has also brought in the following two changes for borrowers in the Sydney and Melbourne metro areas:
- Increasing the maximum exposure to a borrower or guarantor from $2m to $2.5m on Accelerate Prime Loans
- Increasing the maximum loan amount for Accelerate Prime Full Doc Loans with LVRs less than 80% from $1m to $1.5m
Teachers Mutual Bank
Regional lender Teachers Mutual Bank (TMB), along with its subsidiaries Unibank and Firefighters Mutual Bank, have also announced a series of rate changes.
The bank is increasing the interest only variable rate by 20 basis points to 5.66% p.a. (comparison rate 5.71% p.a.). At the same time, interest only rates for the Solution Plus Home Loan have been increased by between 30 and 50 basis points depending on the LVR. Rates span between 4.49% p.a. (comparison rate 4.74% p.a.) and 4.67% p.a. (comparison rate 4.29%).
Rates for the principal & interest Solutions Plus Home Loan have also been decreased by 15 basis points to 4.39% p.a. (comparison rate 4.64% p.a.) for those borrowing between $240,000 and $499,999 where the LVR is greater than 80% and less than or equal to 90%.
“The changes to these rates are in line with our regulatory obligations and current rates available across the market. We continue to offer products to support our home loan customers, including our 100% mortgage offset facility,” Steve James, CEO of Teachers Mutual Bank, told
Australian Broker.
These rate changes at TMB came into effect on Tuesday (1 August).
Related stories:
Anxious home buyers preparing for rate rises
Future loan rate cuts may be on the cards
Second tier banks announce new rate changes
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