From the AFR:
Commonwealth Bank of Australia, the nation’s largest lender, is planning to cut investment property interest rates and slash minimum loans by more than 90 per cent, triggering claims by rivals of a price war between property investment lenders.
It comes as more than 160 home loan products – both owner-occupied and investor – slip below the benchmark 4 per cent, encouraging property buyers to shop around for best rates.
ME Bank, which is owned by 29 superannuation funds, today announced rates cut of up 40 basis points to 4.24 per cent on investor property loans with a deposit of 20 per cent or less.
CBA, which accounts for one in four property loans, is cutting rates on its “extra home loan” and “extra investment home loan” products by more than 40 basis points to 4.24 per cent and 4.51 respectively. The bank’s standard variable rate is 5.35 per cent.
…”There is a mortgage war out there,” warns Martin North principal of Digital Finance Analytics, a consultancy for major banks and finance service providers.
Do we really need to draw you a picture, APRA? Tighten you fools.
