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TMB Ltd has lowered its interest rate floor for home loan serviceability assessments, as well as announced rate cuts across its fixed rate products.
Teachers Mutual Bank Ltd has lowered its interest rate floor for home loan serviceability assessments from 5.50 per cent to 5.00 per cent, across all its divisions – including Firefighters Mutual Bank, Health Professionals Bank, Teachers Mutual Bank and UniBank.
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Further, the banking group has announced that it has cut fixed rates across the board by 32 basis points, with new principal and interest loans for owner-occupiers starting at 2.66 per cent (3.97 per cent comparison) and for investors starting at 2.81 per cent (4.00 per cent comparison).
New interest-only loans for owner-occupiers start from 2.81 per cent (4.02 per cent comparison), and for investors starting from 2.96 per cent (4.05 per cent comparison).
Applicants who have applied for a fixed-rate home loan and have not yet been funded will have the new rate automatically applied upon funding.
The lowered serviceability measures and fixed rates will be applied to all new home loan applications submitted from 20 March 2020.
The announcement comes just days after TMB revealed it has increased the maximum loan-to-value ratio for new home loans from 90 per cent to 95 per cent for existing dwellings, applicable for both owner-occupiers and investors, effective from 17 March 2020.
[Related: TMBL increases LVRs for loans with LMIs]
