Lender withdraws from investment market

By |
Teachers Mutual Bank has temporarily withdrawn from new investment home lending in an attempt to curb growth in this part of its portfolio and meet APRA requirements. 

“We have been working closely with the regulator to manage the growth of our investment lending portfolio,” Steve James, CEO of Teachers Mutual Bank said.  

In December 2014, APRA required that all financial institutions limit their investment lending growth to 10%. According to the banking regulator’s latest monthly banking statistics, Teachers Mutual Bank grew its investment portfolio by three times the limit in the 12 months to March 2016.
“The strong demand from our membership base has meant our investment home loan growth has not slowed in line with our expectations, despite the Bank applying a number of micro-policy and pricing disincentives during 2016,” James said.

“In any other context, the strong demand for our investment loan products would be very pleasing, but we take our responsibilities to the regulator extremely seriously, so we have proactively made the decision to temporarily withdraw from investment home lending to new business, effective Wednesday 25 May 2016.”

However, the mutual lender has announced new rates for its three, four and five-year fixed rate owner occupier home loans.

The three-year fixed rate is now 3.74%, whilst the four and five-year fixed rates are both 3.99%.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Top Suburbs : coolbellup , wiley park , darlington , hebersham , south brisbane

go back

Get help with your investment property

Do you need help finding the right loan for your investment?

When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.

Just fill in a few details below and we'll then arrange for a local Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus and appointment is free.

How soon would you like a mortgage?
What is your Annual Household Income i $
Do you currently own any Investment Properties?
Do you own your own residence?
How much equity do you have in all your current properties?
First Name
Last Name
Where do you live?
What number can we reach you on?
E-mail address
We value your privacy and treat all your information seriously - you can check out our privacy policy here