Westpac increases interest rates on residential investment property loans
Westpac today announced an increase in interest rates for residential investment property loans, following the introduction of investor lending growth benchmarks set by APRA.
The standard variable interest rate on Westpac residential investment property loans for new customers will increase by 0.27% to 5.75%, effective 10 August 2015. For existing customers the increase will be effective 25 September, 2015. This timing is to ensure that there is a smooth transition to the differentiated rates structure for the mortgage portfolio.
Fixed rates on residential investment property loans will increase by up to 0.30%, effective 4 August 2015.
Westpac will decrease fixed rates on owner occupier home loans by up to 0.30% effective 4 August 2015.
Consumer Bank Chief Executive, George Frazis, said: "Today's announcement is an important step in ensuring that Westpac meets APRA's benchmark that investor credit growth should be no more than 10 per cent.
"We have already introduced a range of initiatives, including increasing the deposit required for investment property loans to 20 per cent as part of our commitment in meeting APRA's benchmark.
"However, we are pleased to be able to reduce fixed rates on owner occupier loans. We know that the dream of many Australians is to get into their own home and the new lower fixed rates will benefit customers that are looking for security and peace of mind about their loans and monthly repayments."
Westpac has a range of mortgage options available to customers including splitting loans between fixed and variable rates. Customers are encouraged to discuss their banking arrangements with their local bank manager or contact Westpac on 132 558 or visit www.westpac.com.au to ensure they have the right mortgage product to suit their individual needs.