Some major lenders have reduced home loan rates on variable rate home loans and hiked investment loans but it’s not all bad news for investors!

How much your monthly repayments will change will depend on the lender you’re with and the type of mortgage that you have.

Some of these changes have already taken affect so what can you do now?

Who are the winners?

You’ve probably benefited if you have a:

• Home loan with principal and interest (P&I) repayments.
• Fixed rate investment or interest only loan since the bank can’t change your rate.

Who are the losers?

You’ve probably lost out if you have:

• A home loan with interest only repayments.
• An investment loan with P&I repayments.
• An investment loan with interest only repayments (worst affected).

Which banks have changed their rates?

Commonwealth Bank (CBA) Standard Variable Rates

• Owner occupied P&I: Interest rate reduced 0.03% to 5.22%
• Owner occupied interest only: Increased 0.30% to 5.77%
• Investment P&I: No change at 5.80%
• Investment interest only: Increased 0.30% to 6.24%
• These changes are effective from 7 July 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

National Australia Bank (NAB) Standard Variable Rates

• Owner occupied P&I: Reduced 0.08% to 5.24%
• Owner occupied interest only: Increased 0.35% to 5.77%
• Investment P&I: No change at 5.80%
• Investment interest only: Increased 0.35% to 6.25%
• These changes are effective from 30 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

ANZ Standard Variable Rates

• Owner occupied P&I: Reduced 0.05% to 5.20%
• Owner occupied interest only: Increased 0.30% to 5.75%
• Investment P&I: Reduced to 5.80%
• Investment interest only: Increased 0.30% to 6.26%
• These changes have been effective since 16 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

St George Standard Variable Rates

• Owner occupied P&I: Reduced 0.08% to 5.22%
• Owner occupied interest only: Increased 0.31% to 5.81%
• Investment P&I: No change at 5.78%
• Investment interest only: Increased 0.34% to 6.32%
• These changes are effective from 30 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

Westpac Standard Variable Rates

• Owner occupied P&I: Reduced 0.08% to 5.24%
• Owner occupied interest only: Increased 0.34% to 5.83%
• Investment P&I: No change at 5.79%
• Investment interest only: Increased 0.34% to 6.30%
• These changes are effective from 30 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

Bankwest Standard Variable Rates

• Owner occupied P&I: No change at 3.92%
• Owner occupied interest only: No change at 4.29%
• Investment P&I: Reduced 0.40% to 4.54% (conditions apply)
• Investment interest only:No change at 5.24% (conditions apply)
• These changes are effective from 30 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

Suncorp Standard Variable Rates

• Owner occupied P&I: No change at 5.55%
• Owner occupied interest only: No change at 5.55%
• Investment P&I: Increased 0.12% to 5.99%
• Investment interest only: No longer available
• These changes are effective from 3 July 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

AMP Standard Variable Rates

• Owner occupied P&I: No change at 4.29%
• Owner occupied interest only: No change at 4.80%
• Investment P&I: Increased 0.35% to 5.12%
• Investment interest only: Increased 0.34% to 5.40%
• These changes have been effective since 23 June 2017.
• The above rates exclude your professional package discount (if applicable) so your rate is likely much lower.
• If your home loan is fixed then it has not been affected.

You can switch to P&I repayments by emailing customercare@homeloanexperts.com.au and we’ll take care of this for you.

We can also assess your options if you would like to refinance.

Other lenders

You can email our customer care team at customercare@homeloanexperts.com.au and we’ll confirm if your rate has changed.

Did you move into your investment property?

If you can provide evidence that you’re living in the property, we can switch your loan to a lower interest rate.

Simply email us at customercare@homeloanexperts.com.au and we’ll take care of this with your bank.

Why aren’t fixed rates affected?

If you fixed prior to your lender’s announcement, you can breathe a sigh of relief because they can’t change your fixed rate!

However, fixed rates for new loans are affected, or if you’re planning to fix your existing home loan now.

Should I refinance?

If you want to continue making interest only repayments, refinancing may or may not be in your best interests.

The reason is that the lenders that haven’t yet put up their rates are likely to do so very soon.

However, there may be a benefit to refinancing if:

• Your mortgage is over 2 years old.
• You owe less than 80% of the property value.
• You’re on a variable rate.
• You’re willing or in a position to make P&I repayments.

Call us on 1300 889 743 and one of our mortgage brokers can complete an assessment and let you know the best options available to you.

Monitoring your interest rate

As a customer of Home Loan Experts, we’ll automatically check your interest rate every two years to ensure it’s still competitive.

However, you can check with us any time if you feel that your lender is taking you for a ride with the interest rate they’re offering you.

Unfortunately, banks don’t reward loyalty!

Why did this happen?

The Australian Prudential Regulation Authority (APRA) (the industry regulator) is trying to limit certain types of loans to make sure that our housing market and banks are sustainable.

They’ve targeted investment loans and interest only loans and forced the banks to limit the number of these two loan types they approve.

Home loans (owner occupied loans) with P&I repayments are seen as a lower risk and some banks have actually reduced the home loan rates on these mortgages!

If the banks didn’t make these changes then they would be penalised by APRA so, to a certain extent, they didn’t have much of a choice.

Of course, that’s little comfort to people who’ve just had their interest rate hiked.

If you’re an existing Home Loan Experts customer, please call on 1300 889 743 and we’ll let you whether you can get a competitive home loan rate elsewhere.

Alternatively, it may be better for you to switch from interest only to P&I repayments.