National Australia Bank is set to raise interest rates for property investors who are paying off principal, as well as interest.
The rate rise will come into effect on April 4 and be announced to mortgage brokers today, sources told the Street Talk column in The Australian Financial Review.
NAB will lift rates by 0.15 of a percentage point for property investors who are paying off principal, as well as interest.
The move comes as NAB introduces a new mortgage pricing structure with NAB having its home loan products in four distinct categories.
Loans will be grouped by both borrower type (owner-occupier or investor) and loan structure (interest-only or principal and interest).
The AFR says it will mark the most differential pricing strategy among the Big Four in the home loan market, contrasting with the "two-tier" mortgage market, which typically now sees investors charged higher rates than owner-occupiers.
Last year NAB lifted rates on interest-only loans, rather than targeting all housing investors which meant there was a minority of property investors at NAB spared the industry-wide crackdown on landlord borrowers.
Street Talk noted, the hike is still smaller than NAB's 0.29 percentage point rate rise for all of its interest-only customers of last July, a move that was aimed property investors who favour interest-only loans for the higher tax deductions.