Powered by MOMENTUM MEDIA
subscribe to our newsletter

TMB expands home loan offering to investors

The mutual bank has announced the introduction of a new investment home loan product.

Teachers Mutual Bank (TMB) has extended its Classic Home Loan offering to investors, effective for new business and external refinances from 18 June.

The home loan is priced with a variable rate of 3.67 per cent and will be available to investors paying principal and interest on loans valued from $150,000 to $1 million.

The offering enables borrowers to take out a loan with an LVR of up to 85 per cent – prior to the capitalisation of LMI.

In a statement to Mortgage Business, TMB’s head of third-party distribution, Mark Middleton, said the product is predominately targeted towards first home buyers (FHBs) within its membership base. 

Advertisement
Advertisement

“The Investor Classic Home Loan provides borrowers with a competitive investment product,” he said.

“We see this option as a great opportunity for young professionals who are entering the housing market to take advantage of our low investor rate on offer.

“We believe this may be a popular option for our main key worker markets in the education, emergency services, and health sectors.”

TMB is the latest lender to launch a new home loan offering following the Reserve Bank of Australia’s (RBA) decision to cut the official cash rate to a new record low of 1.25 per cent.

The RBA’s decision has prompted some lenders to drop rates to as low as 2.99 per cent – as offered by Greater Bank and UBank on their one-year owner-occupied fixed rates.

PROMOTED CONTENT


Non-bank lender Reduce Home loans has also announced the introduction of an owner-occupied variable home loan offering with an interest rate of 3.09 per cent, targeted at borrowers with 40 per cent deposit.

Mortgage House, which recently funded the launch of an owner-occupied variable home loan with an interest rate of 3.29 per cent through uno Home Loans, has also dropped its rate to 3.15 per cent in response to the RBA’s announcement.

Westpac has also revamped its product suit for first home buyers (FHBs), introducing two new five-year fixed rate mortgage products, starting from 3.49 per cent.

However, as part of its decision to “simplify” its offering, the major bank has withdrawn its three-year and five-year Fixed Option Home and Investment Property loans.  

[Related: Westpac revamps FHB offering]

 

 

TMB expands home loan offering to investors
Teachers Mutual Bank
mortgagebusiness

Grow your business exponentially in 2022!

Discover the right strategies to build a more structured, efficient and profitable businesses at The Adviser’s 2022 Business Accelerator Program.

Visit the website here to secure your ticket.

Charbel Kadib

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.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The percentage of young adults looking to pay down their home loans has risen over the past five months, according to new data. ...

Despite the Reserve Bank digging its heels in on the timing of its cash rate climb, Westpac economists have predicted the right conditions w...

Customer-owned banks operate around four branches per $1 billion in assets, while the big four collectively run less than one shopfront per ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

When do you expect the cash rate to start increasing?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.