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The majority of lenders will eventually adopt differential pricing for home loans after new Reserve Bank figures revealed a drop in investor lending growth, according to RateCity.
RBA figures released this week showed that investor lending growth over the 12 months to August had slowed to 10.7 per cent – down from 11 per cent in June.
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RateCity data shows that almost half of all lenders now offer different rates for investors and owner-occupiers, with a difference of up to 0.85 percentage points.
“Initially, it was the major banks adopting different rates, but as the weeks go by we’re seeing more and more lenders introduce this two-tiered pricing system,” RateCity spokesperson Sally Tindall said.
“Over time, we expect the majority of lenders will use differential pricing, at least while the housing market continues to push the envelope.”
Ms Tindall said that for the last 10 years owner-occupiers and investors have generally had the same home loan rates.
“Now, all of a sudden, owning and living in your own home can work in your favour,” she said.
“Half or three quarters of a percentage point might not seem like much right now, but 30 years down the track it can translate into thousands of dollars.”
[Related: ING Direct ups rates for existing investors]
