Effective this Friday, NAB Broker has announced that new variable rates will apply for its investment loans and Homeplus Low Doc loans.
NAB Broker has also reduced the maximum LVR (including LMI capitalisation) for investment loans to 90 per cent, and now requires customers to provide evidence of non-NAB loan repayments.
Futhermore, NAB’s affordability rate used in the serviceability assessment will be amended to be the higher of 7.40 per cent or 2.25 per cent above the effective borrower rate. A loading rate will also be applied on existing mortgage repayments as part of borrowers’ serviceability assessment.
NAB Broker general manager Steve Kane said the changes demonstrated the bank’s commitment to brokers.
“The current low-rate environment has helped drive significant growth in the investor housing market, and it’s important for us and the industry to ensure any growth is sustainable,” he said.
“It is important we make sure those borrowing money in the current environment can maintain their loan when rates inevitably increase.”
Meanwhile, Advantedge Financial Services has announced it will increase its variable and fixed interest rates for new and top-up investment-purpose loans by 15 basis points.
Advantage has also reduced its maximum LVR for investment-purpose loans to 90 per cent, effective 13 June, and now requires customers to provide evidence of existing loan repayments.
Advantedge will also apply a serviceability repayment loading buffer to existing mortgage repayments as part of borrowers’ serviceability assessment.
“We have been extremely proactive in the market for owner-occupier lending, with the special offer that we commenced on 11 May still available until 31 July, providing a headline variable rate of 4.13 per cent per annum on full-doc loans to 80 per cent LVR,” Brett Halliwell, general manager of Advantedge Distribution, said.
“We are confident that brokers throughout the industry will continue to embrace the competitive rates available under this special offer by recommending our private-label products to their owner-occupier clients,” he said.