Following the big four, several smaller lenders have also lifted mortgage rates, especially on the investment lending side of the ledger.
For example, ME Bank, announced it will increase its investor home loan reference rates by 25 basis points, effective 27 April 2017. The move will affect new and existing investor borrowers and will put ME’s standard variable rate for investor borrowers at 5.28% p.a. The bank said the change was made to address increasing regulatory and compliance costs and to ensure the bank remains within investor lending growth limits. The bank said it will not increase the reference rate for any owner-occupier home loans and continues to offer a highly competitive standard variable rate for owner-occupiers at 5.03% p.a.
ING Direct announced that it will increase the standard variable rate on two of its investor home loan products by 0.25 per cent from Tuesday, 4 April. Their standard variable rate on the Orange Advantage home loan for investors will move to 5.42 per cent, while the standard variable rate on the Mortgage Simplifier home loan for investors will be 5.32 per cent at the new rate.
