Australia’s largest home lender, the Commonwealth Bank, is moderating investor home loan growth by lifting loans by 0.27% to 5.72%.
It’s also increased fixed rates for 1, 2, 3, 4 and 5 year investor home loans by between 0.10% and 0.40%.
The ANZ Bank yesterday announced its variable residential investment lending rate would rise by 27bps to 5.65%.
Demand for investor home loans across Australia has reached historic highs with more than half of new home loan approvals being for property investment.
APRA in December introduced regulatory measures to restrict investor lending growth to no more than 10% a year.
However, the Commonwealth Bank has had trouble keeping investment lending growth down.
“Despite making a range of changes to our investor lending policies in the past few months we have witnessed ongoing investor lending growth, and at an industry level, investor lending approvals remain 22% higher than 12 months ago,” says Matt Comyn, group executive for Commonwealth’s retail banking.
On owner occupied loans, Commonwealth has reduced rates on its 1, 2, 3, and 4 year fixed rate loans by up to 30 basis points.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.