Tasmania's MyState raises home loan rates for investors

A regional bank has joined the big banks in raising home loan interest rates for investors.

Tasmania-based MyState said it had increased its rates for residential investors by 25 basis points for its variable rate residential investment loan and by 10 bps on its 1, 2, 3 and 5 year fixed residential investment loans

The new rates will be for new and pipeline customers with loans contracted on or after 21 June, according to the Australian Broker.

The bank also announced it was reducing the loan-to-value ratio for residential property investors, capping it at 50 percent.

This will allow MyState to manage its investor portfolio responsibly and is in response to new regulatory requirements, the bank’s head of broker Paul Herbert said in a note sent out to brokers.

The change applies to all new residential investment loans.

Other changes introduced by MyState include additional fees for specific loan applications including a:

• $200 additional valuation fee (charged for each additional security)

• $200 company/trust fee (charged when a borrower is a company or trust or acting as a trustee for a trust)

The fees will affect new lending applications from 28 June and have been brought in to reflect additional cost and time or establishment, Herbert said.

Earlier this week, MyState Bank chief executive Melos Sulicich had said investors were listing their properties on Airbnb because of a lack of hotel accommodation.