Easy Street offers investors and homeowners the same mortgage rates

Online lender Easy Street has abandoned the usual practice of charging investors higher mortgage rates than homeowners.

The Community First Credit Union subsidiary has simplified its pricing structure for fixed and variable loans, except those associated with current or previous special offers.

The new structure means that there will be only one rate for each fixed loan and one rate for the standard variable loan, whether the borrower is an investor or a residential buyer.

Interest rates are also the same for principal and interest repayments (P&I) and interest-only repayments (IO).

Easy Street has a daily variable rate of 3.75% per annum (3.79% compare rate *) with a 100% offset account available.

It has one-year fixed rates starting at 2.29% pa (comparison rate of 3.66% pa) and two-year fixed rates starting at 2.29% pa (comparison rate of 3.53 % pa).

Community First Credit Union chief executive John Tancevski said the change “demonstrates Easy Street’s long-standing reputation for delivering banking value and simplicity.”

“We want to make banking simpler and easier for people by removing some complexity in pricing,” Tancevski said.

“As a bonus, investors can now access very competitive prices, unlocking more savings.”

Buying an investment property or looking to refinance? The table below shows home loans with some of the lowest interest rates in the market for investors.

Basic criteria: a mortgage in the amount of $ 400,000, variable, fixed, principal and interest (P&I) with an LVR (loan-to-value) ratio of at least 80%. If the listed products have an LVR

The new pricing structure will not apply to Easy Street’s current special variable rate of 1.95% per annum (1.99% per annum comparison rate) on loans of $ 750,000 and over.

Although the pricing of interest-only repayments is the same, the lender noted that there would still be restrictions on maximum interest terms, with the usual Easy Street valuation criteria being used in connection with the loan approval process.

“Our new rates realign all of our interest rates, whether for investors, homeowners and whether they choose to make repayments on a P&I basis or interest only,” Tancevski said.

Support for returning investors

Data from the Australian Bureau of Statistics (ABS) showed new loan commitments to investors rose 2.1% in April to $ 8.1 billion, the highest level since mid-2017.

This is the latest evidence to suggest that investors are returning to the market in droves after a noticeable drop in investor lending last year.

CoreLogic’s head of research, Tim Lawless, said increased investor activity would further drive up house prices, which could lead regulators to step in next year.

“A slowdown in house price appreciation is expected as affordability constraints gradually impact market participation and potentially stricter credit policies loom further,” Lawless said.

Mr Tancevski said part of the decision to change Easy Street’s new pricing structure was taken in response to changing real estate market conditions.

“With investors returning to Australian property markets, Easy Street’s new pricing structure in the investor space will be very competitive as we will be below almost all of our competitors’ prices,” he said. declared.

“Having the same rates for investors and homeowners is unique in the mortgage industry in Australia and means we won’t charge you more if you fall into one category or the other. ”

Photo by Priscilla Du Preez on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller part of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Customer-Owned Institutions and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as withdrawal fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.

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