ANZ has relaxed the restraints it placed on interest-only mortgage lending in 2017 and indicated it is easing its attitude to lending to property investors.
The Big Four banks say it is once again offering customers an interest-only period of 10 years, up from the previous maximum of five years. It will now offer interest-only loans to customers will a deposit of only 10%, whereas previously it required a 20% deposit.
The changes suggest that ANZ is trying to lift growth in the investor market after chief executive Shayne Elliott last month admitted the bank had been “over conservative”.
It is also the latest sign of a loosening in restrictions on investor and interest-only loan growth after APRA removed caps on these types of mortgages late last year.
“On recent review, we have made a decision to increase our focus on the investor market. The upcoming changes demonstrate our continued appetite in the investor market while ensuring we remain in line with our APRA requirements,” ANZ said.
The bank believes that by making the changes it will offer a longer interest-only period than rival major banks, although other banks already offer interest-only loans with a 10% deposit.