RateCity.com.au
  1. Home
  2. Home Loans
  3. News
  4. Investors finally get the APRA message

Investors finally get the APRA message

Nick Bendel avatar
Nick Bendel
- 2 min read
article cover image

The most recent round of bank rate hikes has pushed would-be investors over the edge, resulting in a sharp drop in investor housing commitments.

Today’s ABS Housing Finance data shows the value of investment housing commitments in July fell by $460 million or 3.9 per cent from the previous month, according to the seasonally adjusted figures.

The last out-of-cycle rate hikes for investors and customers paying interest-only were announced and enacted in June.

“The timing of this drop says it all,” said RateCity money editor Sally Tindall.

“In June we saw the big banks lift rates for investors. The very next month, almost half a billion dollars of investors’ dollars fell away.

“Today’s ABS figures confirm that investors are finally getting APRA’s message,” she said.

istock_79305201_small5

Shop around or pay the penalty

RateCity data shows the difference between owner-occupiers paying principal and interest and investors paying interest-only is on average 0.65 percentage points, but can climb as high as 1.94 percentage points.

“It’s no surprise some investors are getting cold feet. If they don’t shop around, they can get stung by almost 2 percentage points. That translates to $173,271 on a $350K 30-year loan,” Ms Tindall said.

Note: Calculations assume five-year interest-only period.

Disclaimer

This article is over two years old, last updated on September 8, 2017. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent home loans articles.

Compare home loans in Australia

5.99%

6.48%

$3,448

More detailsclick for more details

Australian Credit Licence 395219

Fees & charges apply

  • Promoted
  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I

6.39%

6.40%

$3,342

Enquire

Australian Credit Licence 233714

Fees & charges apply

  • Promoted
  • Cashback
  • Owner Occupied
  • Variable
  • 20% min deposit
  • P&I

5.69%

6.13%

$3,127

More detailsclick for more details

Australian Credit Licence 395219

Fees & charges apply

  • Promoted
  • Owner Occupied
  • Fixed 3 years
  • 10% min deposit
  • P&I

6.29%

6.20%

$3,311

More detailsclick for more details

Australian Credit Licence 234945

Fees & charges apply

  • Promoted
  • Special
  • Investor
  • Variable
  • 20% min deposit
  • P&I

6.84%

7.16%

$3,611

Enquire

Australian Credit Licence 233714

Fees & charges apply

  • Promoted
  • Owner Occupied
  • Variable
  • 5% min deposit
  • P&I

6.95%

7.15%

$2,896

Enquire

Australian Credit Licence 234945

Fees & charges apply

  • Promoted
  • Investor
  • Variable
  • 20% min deposit
  • Interest Only

7.20%

6.90%

$3,000

Enquire

Australian Credit Licence 234945

Fees & charges apply

  • Promoted
  • Investor
  • Variable
  • 40% min deposit
  • Interest Only

Product database updated 21 Jan, 2025

Share this page

Get updates on the latest financial news and products

By continuing, you agree to the RateCity Privacy Policy, Terms of Use and Disclaimer.

Latest home loans news

Promoted home loans

Unloan (a division of CBA)

Variable Rate Home Loan LVR < 80%

Real Time Rating™

  • 2024 Award Winner
  • Special
  • Owner Occupied
  • Variable

Interest rate p.a.

5.99%

Comparison rate* p.a.

5.90%

More detailsclick for more details

Australian Credit Licence 234945
Fees & charges apply

ubank

Neat Home Loan

Real Time Rating™

  • Special
  • Owner Occupied
  • Variable
  • 40% min deposit

Interest rate p.a.

6.09%

Comparison rate* p.a.

6.11%

More detailsclick for more details

Australian Credit Licence 230686
Fees & charges apply

ANZ Plus

Variable Home Loan

Real Time Rating™

  • Cashback
  • Owner Occupied
  • Variable
  • 20% min deposit

Interest rate p.a.

6.09%

Comparison rate* p.a.

6.10%

More detailsclick for more details

Australian Credit Licence 234527
Fees & charges apply

loans.com.au Pty Ltd

Variable Home Loan

Real Time Rating™

  • Owner Occupied
  • Variable
  • 10% min deposit
  • P&I

Interest rate p.a.

6.04%

Comparison rate* p.a.

6.08%

More detailsclick for more details

Australian Credit Licence 395219
Fees & charges apply

product data updated on

Product data updated on 21 Jan 2025