WA-based P&N Bank has announced changes to its home loan fixed rates for investment purposes.
Effective 13 October, the bank – a division of Police & Nurses Ltd, which operates under the mutual model – will apply new fixed rates across different durations of the investor loan.
The rates will differ depending on the loan-to-value ratio (LVR).
For loans with an LVR of 80 per cent or less, the bank has slashed rates by between 40 and 61 bps, depending on the fixed-term period.
For example, for a one-year loan, the fixed rate has been reduced from 3.10 per cent to 2.49 per cent, while for a five-year loan, it has been reduced from 3.39 per cent to 2.99 per cent.
For loans with an LVR of more than 80 per cent, rates have reduced by between 51 and 30 bps.
The one-year fixed rate has been slashed from 3.20 per cent to 2.69 per cent, while the five-year fixed rate has been dropped from 3.49 per cent to 3.19 per cent.
Earlier this year, P&N Bank announced that it would reduce the servicing rate for both existing P&N Bank home loans and external home loans from 6.75 per cent to a flat rate of 6 per cent.
However, it did not make changes to the servicing rate of new home loans, which were still calculated at the actual rate plus 2.50 per cent.
Westpac Group and its subsidiaries recently dropped their floor rates by 25 bps, with a new floor rate of 5.05 per cent per annum applying for all mortgage applications submitted to the banks as of 9 October. A buffer of 2.50 per cent will remain in place.
[Related: APRA finalises mortgage lending reforms]
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.
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.