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.
“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.
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However, as part of its decision to “simplify” its offering, the major bank has withdrawn its three-year and five-year Fixed Option Home and Investment Property loans.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]
Charbel Kadib is the news editor on the mortgages titles at Momentum Media.
Before joining the team in 2017, Charbel held roles with public relations agency Fifty Acres, and the Department of Communications and the Arts.