Industry superannuation fund-backed ME has made changes to its mortgage policies in response to tighter regulations introduced by the
Australian Prudential Regulation Authority (APRA).
From last Friday (14 April), the bank no longer accepts investor home loans and interest only home loans for investors and owner-occupiers with an LVR greater than 90%.
The bank has not changed its credit policies for owner occupier principal and interest home loans however.
“The change in credit policy has been made to ensure ME complies with new regulations brought in by APRA to manage the risks of rising house prices,” the bank said in a statement.
“Specifically it ensures we comply with the requirement to maintain investor lending within a 10% growth limit and interest only lending within a 30% growth limit. Recent changes by other banks to investor, interest only and LVR credit policies have seen an increase in demand for ME’s home loan products, including for these types of loans.”
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