The Community First Credit Union subsidiary has simplified its pricing structure for both fixed and variable loans, except those associated with current or previous specials.
The new structure means there will be just one rate for each fixed loan and one rate for the standard variable loan, regardless of whether the borrower is an investor or residential buyer.
The interest rates are also the same for both principal and interest (P&I) repayments and interest-only (IO) repayments.
Easy Street has an everyday variable rate of 3.75% p.a. (3.79% comparison rate*) with a 100% offset account available.
It has one-year fixed rates from 2.29% p.a. (3.66% p.a. comparison rate) and two-year fixed rates from 2.29% p.a. (3.53% p.a. comparison rate).
Chief executive of Community First Credit Union John Tancevski said the change "demonstrated Easy Street's long standing reputation for offering banking value and simplicity".
"We’re about making banking simpler and easier for people by removing some pricing complexity," Mr Tancevski said.
"As a bonus, investors can now access highly competitive pricing, unlocking more savings.”
The new pricing structure won't apply to Easy Street's current special variable rate of 1.95% p.a. (1.99% p.a. comparison rate) on loans of $750,000 and above.
Although pricing for interest-only repayments would be the same, the lender noted that there would still be restrictions on maximum interest-only terms, with Easy Street's usual assessment criteria utilised as part of the loan approval process.
"Our new rates bring all our interest rates back into alignment whether it’s for investors, owner-occupiers and whether they choose to make repayments on a P&I or interest-only basis,” Mr Tancevski said.
Support for returning investors
Data from the Australian Bureau of Statistics (ABS) showed new loan commitments for investors rose 2.1% in April to $8.1 billion, the highest level since mid-2017.
This is the latest evidence to suggest investors are returning to the market in droves after a noticeable dip in investor lending last year.
CoreLogic head of research Tim Lawless said the increased investor activity would further increase house prices, potentially leading to regulators stepping in next year.
"A slowdown in dwelling price appreciation is expected as affordability constraints progressively impact market participation, and potentially tighter credit policies looms further down the track," Mr Lawless said.
Mr Tancevski said part of the decision to alter Easy Street's new pricing structure was made in response to changing property market conditions.
“With investors returning to property markets around Australia, Easy Street’s new pricing structure in the interest-only space for investors will be highly competitive as we will be below almost all of our competitors' pricing," he said.
“Having the same rates for investors and owner-occupiers is unique in the mortgage industry in Australia and means we won’t charge you more if you fall into one category or the other."
Photo by Priscilla Du Preez on Unsplash
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