Auswide Bank and AMP Bank have announced changes to their owner-occupied and investment home loan offerings.
Effective immediately for all new business, AMP has lifted interest rates on all of its interest-only home loan products, with rises of up to 40 basis points.
AMP has made the following changes to its interest-only home loans for owner-occupied borrowers:
- A rise of 40 basis points for loan amounts from $250,000 to $499,999, from 4.48 per cent to 4.88 per cent
- A rise of 40 basis points for loan amounts from $500,000 to $749,999, from 4.48 per cent to 4.88 per cent
- A rise of 40 basis points for loan amounts from $750,000 and above, from 4.34 per cent to 4.74 per cent
However, AMP has dropped third-year fixed rate on its owner-occupied home loans, which now start from 3.79 per cent, down by 70 basis points from 4.29 per cent.
- A drop of 50 basis points on third-year fixed rates for its Professional Package, from 4.29 per cent to 3.79 per cent
- A drop of 70 basis points on third-year fixed rates for its Affinity Package, from 4.49 per cent to 3.79 per cent
- A drop of 70 basis points on third-year fixed rates for its Select Package, from 4.49 per cent to 3.79 per cent
The non-major lender has also announced increases to its owner-occupied and investment home loan interest rates.
However, its RBA Rate Tracker home loan and existing borrowers from its Best from the Best campaign will be exempt from the changes.
Auswide has increased its interest rates by 5 basis points for owner-occupied home loans and by 13 basis points for investment home loans and residential lines of credit.
In a statement released to the media, managing director Martin Barrett attributed the bank’s decision to rising funding costs.
“Despite no increase in the official cash rate, we’ve had to make this difficult decision due to a sustained increase in 30 and 90-day BBSW levels.
“We are now paying significantly more for funding than we were six months ago which this increase will help offset.”
Auswide noted that from 27 June 2018, its Freedom Package special variable rates will include:
- Owner-occupied principal and interest loans starting from 3.76 per cent
- Investment principal and interest loans starting from 4.04 per cent
- Investment interest-only loans starting from 4.34 per cent
[Related: ‘Blunt’ cash rate lever has become obsolete]
Charbel Kadib is the news editor on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.