Heritage Bank has said it has temporarily stopped accepting new applications for investment home loans, to ensure they comply with regulatory limitations on growth.
Heritage has experienced a sharp increase in the proportion of investment lending in our new approvals recently.
That’s an outcome both of our attractive pricing structure and the actions other lenders in the investor market have taken to slow their growth.
We need to manage our investment lending portfolio carefully, to ensure we stay within the caps APRA has placed on growth in investor and interest only lending.
As a result, we’ve taken the decision to temporarily stop accepting applications for new investor lending, effective from Friday (1 September).
We will monitor our approvals and loan portfolio in coming weeks and review that decision as needed.
They also announced a tiered pricing structure, based on LVR bands for some products, reflecting the risks involved.
Heritage Bank is Australia’s largest customer-owned bank. In 1981 Toowoomba Permanent Building Society (est. 1875) and the Darling Downs Building Society (est. 1897) merged and became Heritage Building Society. In December 2011, Heritage Building Society officially changed its name to Heritage Bank to remain relevant and competitive.
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