The slowing in investor borrowing is set to continue in coming months, with more lenders offering different home loan rates, according to financial comparison website RateCity. It says almost half of all lenders now offer different rates for investors and owner-occupiers, with a difference of up to 0.85 percentage points.
“Initially, it was the major banks adopting different rates, but as the weeks go by we’re seeing more and more lenders introduce this two-tiered pricing system,” said RateCity Money Editor Sally Tindall.
“Over time, we expect the majority of lenders will use differential pricing, at least while the housing market continues to push the envelope.”
This week’s RBA figures showed that the 12-month growth figures in investor housing credit had slowed to 10.7%. This result follows the introduction of different home loan rates for investors and owner-occupiers after the national regulator called for growth in investment lending to be capped at 10%.
The RBA noted that a large number of loans have reportedly changed from investment to owner-occupier in August.