Changes in Discounts for Package Home/Investment Home Loan and LOC as from Monday 9 January 2012
In the past 12 months the market has slowed to the lowest credit growth in more than 30 years resulting in fierce competition in home lending leading to price competition. However, in recent times, with uncertainty in global markets, we have seen a substantial increase in funding costs, and this has resulted in a significant squeeze on home loan margins.
With no signs of funding costs easing, the Bank needs to pull back discounts for new loans. As a result, we are reducing discounts from their current abnormally high peaks to levels that more closely aligned with normal settings.
Effective Monday 9 January 2012, we are launching a new special offer for package home/investment home loans and lines of credit. This new offer replaces the previous special delegation discounts advised in Edge 28 July 2011.
This offer is available for loans under Mortgage Advantage Package, from Monday 9 January 2012 until further notice.
Offer summary:
• Only available for new and existing Package holders taking up new borrowings of $100,000 or more (which is new money to the Bank);
• Discounts on the Standard Variable Rate (SVR) and Residential Equity Rate (RER).
Package Discounts off SVR & RER:
Total Home
Lending Balance (TLB)
LVR of New Loan Application
LVR less than
or equal 80%
LVR greater than
80% and less than
or equal to 90%
LVR greater
than 90%
$150,000 to less
than $250,000
0.50%
0.50%
0.50%
$250,000 to less
than $500,000
0.75%
0.70%
0.60%
$500,000 or more
0.80%
0.75%
0.70%
In the past 12 months the market has slowed to the lowest credit growth in more than 30 years resulting in fierce competition in home lending leading to price competition. However, in recent times, with uncertainty in global markets, we have seen a substantial increase in funding costs, and this has resulted in a significant squeeze on home loan margins.
With no signs of funding costs easing, the Bank needs to pull back discounts for new loans. As a result, we are reducing discounts from their current abnormally high peaks to levels that more closely aligned with normal settings.
Effective Monday 9 January 2012, we are launching a new special offer for package home/investment home loans and lines of credit. This new offer replaces the previous special delegation discounts advised in Edge 28 July 2011.
This offer is available for loans under Mortgage Advantage Package, from Monday 9 January 2012 until further notice.
Offer summary:
• Only available for new and existing Package holders taking up new borrowings of $100,000 or more (which is new money to the Bank);
• Discounts on the Standard Variable Rate (SVR) and Residential Equity Rate (RER).
Package Discounts off SVR & RER:
Total Home
Lending Balance (TLB)
LVR of New Loan Application
LVR less than
or equal 80%
LVR greater than
80% and less than
or equal to 90%
LVR greater
than 90%
$150,000 to less
than $250,000
0.50%
0.50%
0.50%
$250,000 to less
than $500,000
0.75%
0.70%
0.60%
$500,000 or more
0.80%
0.75%
0.70%
