Powered by MOMENTUM MEDIA
subscribe to our newsletter

Lender hikes home loan rates

A non-major bank has increased rates across both its owner-occupied and investment home loan offerings.

Teachers Mutual Bank Ltd (TMBL) has hiked fixed rates by 15 bps across all owner-occupied products with interest-only (IO) terms and investment products with both principal and interest (P&I) and IO terms.

TMBL’s owner-occupied P&I product remains unchanged at 2.19 per cent.

The changes are effective for applications submitted from Friday, 7 August, and will apply across all TMBL brands, which include Teachers Mutual Bank, Firefighters Mutual Bank, Health Professionals Bank and UniBank.

A TMBL spokesperson told The Adviser that as a “gesture of good will” to its broker parts and members, it has agreed to honour existing rate on applications submitted by 6 August 2020 and settled within 90 days.

Advertisement
Advertisement

“This decision has been made in line with member’s best interests during uncertain times,” the spokesperson added.

“Future rate changes will not necessarily be afforded with the same treatment, and we would encourage future applications to apply for rate lock, so your clients can lock in the rate on application for 90 days.”

This latest hike follows a 5 bps increase to fixed home loan rates in May in a bid to manage a 300 per cent spike in home loan volumes.  

TMBL has also made a number of changes to credit policies in recent months to credit quality concerns off the back of the COVID-19 crisis.

Most recently, TMBL ceased lending to Australian expats and lowered its debt-to-income ratio – calculated with the applicant’s total financial debt commitments divided by their total gross income – from a maximum of 8 to a maximum of 7.

PROMOTED CONTENT


[Related: Melbourne recovery to ‘stifle’ short-lived lending recovery]

Lender hikes home loan rates
Lender hikes home loan rates
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

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 digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

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