News about the Australian Prudential Regulation Authority’s move that increases the interest rate buffer for mortgage applications put a spotlight on how serviceability rules could impact borrowers with higher interest rates.

Here is a list of lenders that made changes to their mortgage offerings over the past week.

UBank

UBank has lowered its variable rate for owner-occupiers paying principal and interest (P&I) by 15 basis points (bps) under its UHomeLoan product.

New variable rates will be applied to loan applications that have 80% or 85% LVRs. Lenders Mortgage Insurance (LMI) is waived by UBank for borrowers who obtain a loan with an LVR of 85%.

These are the new rates

  • UHomeLoan variable rate 80% LVR – 2.19% p.a. (2.19% p.a. Comparative rate
  • UHomeLoan variable Rate, 85% LVR – 2.34% p.a. (2.34% p.a. Comparative rate

This was in accordance with the August decision to lower its variable interest rate for new investors.

Heritage Bank

Heritage Bank, owned and operated by customers, has increased its fixed investment rate for standard and Home Advantage home loan products by 10 basis point.

  • Investment Fixed P&I 1 Year – 2.49% p.a. (4.94% p.a. Comparative rate
  • Fixed Investments IO 1 Year – 2.59% p.a. (4.96% p.a. Comparative rate
  • Investment Fixed P&I 2 Years – 2.49% p.a. (4.72% p.a. Comparative rate
  • Fixed Investments IO 2 Year – 2.59% p.a. (4.76% p.a. Comparative rate
  • Investment Fixed P&I 3 Years – 2.59% p.a. (4.54% p.a. Comparative rate
  • Investment Fixed IO for 3 years – 2.69% p.a. (4.59% p.a. Comparative rate
  • Investment Fixed P&I 5 Years – 3.09% p.a. (4.39% p.a. Comparative rate
  • Fixed investment for 5 years – 3.29% p.a. (4.49% p.a. Comparative rate
  • Home Advantage Investment Fixed P&I 1 Year 150k+ – 2.49% p.a. (3.30% p.a. Comparative rate
  • Fixed IO 1year 150k+ Investment in Home Advantage – 2.59% p.a. (3.44% p.a. Comparative rate
  • Home Advantage Investment Fixed P&I 2 Years 150k+ – 2.49% p.a. (3.26% p.a. Comparative rate
  • Home Advantage Investment Fixed IO For 2 Years 150k+ – 2.59% p.a. (3.40% p.a. Comparative rate
  • Home Advantage Investment Fixed P&I 3 Years 150k+ – 2.59% p.a. (3.25% p.a. Comparative rate
  • Home Advantage Investment Fixed IO For 3 Years 150k+ – 2.69% p.a. (3.38% p.a. Comparative rate
  • Home Advantage Investment Fixed P&I 5 Years 150k+ – 3.09% p.a. (3.39% p.a. Comparative rate
  • Fixed IO Home Advantage Investments 5 Year Period 150k+ – 3.29% p.a. (3.54% p.a. Comparative rate

Bank Australia

Bank Australia is owned by and controlled customers and has reduced a number of its variable mortgage products in the Premium and Basic product categories.

Owner-occupier loans had their rates slashed by 20bps, except for LVR tiers of <90%. However, the lender has cut investor rates by tenbps

These are just some of the changes.

  • Basic Home Loan <80% LVR– 20bps to 2.5% per annum (2.34% p.a. Comparative rate
  • Basic Home Loan <90% LVR – Down 10bps to 2.8% p.a. (2.84% p.a. Comparative rate
  • Premium Package <80% LVR20bps to 2.5% (2.89% per year). Comparable rate
  • Premium Package <90% LVR– 10bps decrease at 2.8% (3.19% per annum). Comparative rate
  • Basic Investment Loan P&I <80% LVR– Down 10bps to 28% (2.84% per year). Comparative rate
  • Basic Investment Loan IO <80% LVR– 10bps to 3 % decrease (2.91 p.a. Comparative rate
  • Investment Premium Package P&I <80% LVR– 10bps decrease at 2.8% (3.19% per annum). Comparative rate
  • Investment Premium Package IO <80% LVR – A decrease of 10bps to 3% (3.22% per annum). Comparative rate

Illawara Credit Union

New South Wales’ Illawara Credit Union has made significant improvements to its owner-occupier rate-only rates as part its The Works Package product.

  • The Works Package Home Loan Fixed IO 1 Year – Down 29bps – 2.5% (32.22% P.A. Comparative rate
  • The Works Package Home loan Variable IO– 75bps down to 2.5% (3.01% annually). Comparison rate