Changes to Investment and Interest Only home loan Interest Rates
In response to regulatory requirements, IMB Bank today announced changes to Investment and Interest Only home loan interest rates which will apply to new and existing loans.
IMB Bank’s standard variable interest rate on all its investment home loans will increase by 0.10% p.a. effective Friday 21st July 2017.
The standard variable rate for all Interest Only home loans (owner occupied and investment) will increase by 0.30% p.a. effective Friday 29th September 2017.
Members who hold an investment loan and make interest only repayments will be subject to both interest rate increases.
Where they are able, IMB Bank encourages members who currently make interest only payments to consider switching to principal and interest repayments. In support of this, IMB Bank will be waiving the switching fee that normally applies for a limited time. Members can make this change by contacting their branch or mobile home loan lender, or by calling 133462.
IMB Bank CEO Robert Ryan said, “We did not take the decision to increase these interest rates lightly, however, changes were necessary in order to ensure IMB continues to operate within its regulatory requirements”.
“We always consider the needs of our members when making these decisions and we know that increasing rates will impact some members. While regulatory requirements are driving these changes in the areas of investment and interest only lending, IMB continues to offer some of the best home loan interest rates in the market, particularly for owner-occupiers and principal and interest loans,” Mr Ryan said.