01

Jun

2023

Our Home Loan Pricing Structure and Interest Rates are Changing

We are making several changes to our pricing structure with the introduction of new LVR bands to enable better pricing for risk. In conjunction with the pricing restructure interest rates will also change.

What are the structure changes?

NEW TO BANKING LENDING

  • Loan to Value Ratio (LVR) pricing bands will now be split as follows:
 60% or below   60.01% to 70%   70.01% to 80%   80.01% to 90%   90.01% to 95% 
  • Owner Occupied and Investment interest rates for new to banking lending will now be on one interest rate schedule.
  • Owner Occupied Interest Only, Investment Principal & Interest and Investment Interest Only pricing will be grouped.


EXISTING CUSTOMER SWITCH TO FIX / REFIX

  • Pricing available to existing customers switching to fix or refixing
  • Current Loan to Value Ratio (LVR) will be considered and LVR pricing bands will be split as follows:
 70% or below   70.01% to 80%   80.01% to 90%   above 90% 
  • The Interest Rate Schedule 'Existing Customer Fixed Rates' has been updated to reflect the change in LVR bands.


ADDITIONAL INFORMATION

  • For loans that have been quoted on the old structure but not yet approved as of the midnight 31st May 2023, the new rate will need to be quoted as per the new structure.
  • Reference Rates will not change and continue to be on a separate interest rate schedule.
  • Our current 'Opening Doors for Investors' bonus rate discount campaign has also been approved to continue.


When is the new structure and rates effective?

The new structure and rates will be effective Thursday the 1st June 2023.


What is not changing?

  • Home Loan and Business Loan Reference Rates
  • Investor Campaign – Investment loan receives 0.20% discount when Owner Occupied loan is also brought to Auswide.


NEW PRICING INFORMATION

The revised interest rate schedules are available here from 1st June 2023.


Any New Lending offers listed in the Rate Information Guide are not available on the below:

  • Loans to overseas residents
  • Existing customers are not eligible for New Lending Rates


Things you need to know:

  • Home Guarantee Scheme applicants are only eligible for the 70.01% to 80% LVR band (this includes Basic Home Loan rates, Freedom Package Variable & Fixed rates).
  • For Existing Home Loan Customers who wish to fix their loan, refer to the Existing Loans – Switch to Fixed/Refixing interest rate schedule.
  • Home Loan Key Facts Sheet will be updated and available Thursday the 1st June 2023.
  • For fixed rate loans, the standard fixed rate process will always apply. Please refer to the Rate Lock Guide on our website for more information.


Impacts to existing home loan applications:


Applications quoted but not yet received (loans not yet submitted as at midnight 31st May 2023):

  • VARIABLE - Interest rate will be the new interest rate applicable from 1st June 2023.
  • FIXED (Increase or Decrease) - Interest rate will be the new interest rate applicable from 1st June 2023.

The rate quoted to the customer may no longer exist. Brokers may need to position the rate change with the borrower before proceeding to lodge the application.


Applications received prior to midnight 31st May 2023, but not yet approved (does not include pre-approvals):

  • VARIABLE – Interest rate will be the new interest rate applicable from 1st June 2023.
  • FIXED (Increase) – Unless the customer has chosen to "Rate Lock", the interest rate will be the fixed rate available on the day of settlement. (In cases of no rate lock Lendfast will need to be changed to reflect the new product). 
  • FIXED (Decrease) - The interest rate will be the fixed rate available on the day of settlement.

The standard fixed rate process applies - refer to the Fixed Rate and Rate Lock Information Sheet for guidance.

The rate quoted to the customer may no longer exist.  Brokers may need to position the rate change with the borrower before proceeding with the application.


Applications Approved (includes loans approved prior to midnight the 31st May 2023 (documented or not documented):

  1. VARIABLE – Interest rate will be the documented or quoted rate prior to the change on the 1st June 2023 (original discount margin applied).
  2. FIXED (Increase) – Unless the customer has chosen to "Rate Lock", the interest rate will be the fixed rate available on the day of settlement. 
  3. FIXED (Decrease) - The interest rate will be the fixed rate available on the day of settlement. The standard fixed rate process applies - refer to the Fixed Rate and Rate Lock Information Sheet for guidance.


Loan Applications that have settled:

  • VARIABLE - There is no impact to loans that have settled.
  • FIXED - There is no impact to loans that have settled.


Please contact your Broker Relationship Manager if you require further assistance or any clarification.

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