More lenders loosen loan terms for borrowers
The crowd of lenders who are easing their loan serviceability terms has grown again this week.
Non-bank lender Resimac has responded to the Australian Prudential Regulation Authority’s (APRA) changes to its home lending guidance, which allows lenders to self-assess their interest rate buffers.
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Resimac is not bound by these standards, but nonetheless, it has lowered its interest rate floor from 7.25 per cent to 5.75 per cent. The non-bank has noted that the changes will not apply to Resimac Specialist loans, which will continue to be assessed at current standards.
The changes are effective for new applications submitted for Resimac Prime products from Thursday, 1 August.
The market moves so far
- Bendigo and Adelaide Bank has cut its interest rate floor from 7.35 per cent to 5.75 per cent.
- The Bank of Sydney has reduced its interest floor rate to 5.85 per cent.
- ANZ has reduced its interest rate floor to 5.5 per cent.
- Westpac has reduced its interest rate floor to 5.75 per cent.
- CBA has reduced its interest rate floor to 5.75 per cent.
- Macquarie has reduced its interest rate floor to 5.3 per cent.
- Suncorp has reduced its interest rate floor to 5.3 per cent.
- Teachers Mutual Bank has lowered its interest rate floor to 5.5 per cent.
- NAB has reduced its interest rate floor to 5.5 per cent.
Moves are still expected from non-major lenders, including AMP Bank.
