NAB has dropped investor rates by 30 basis points, making their new rate the lowest that they have ever advertised.
The rate change comes as property investors make a strong comeback into the market, with anecdotal evidence claiming that they have overtaken First Home Buyers as the major driver in the market, particularly in Regional Australia.
As of now, NAB’s Investor Base Variable Rate (BVR) Special offer will be reduced 30 basis points to 2.79% for new BVR loans with P&I and less than 80% loan to value ratio and 2.99% for new BVR Investor only Loans at less than 80% LVR.
“This is a welcome initiative for property investors, because they’ve been in the background for the last 15 months with First Home Buyers taking advantage of grants and incentives from state and Federal governments,” said Peter Koulizos, Chairman of Property Investment Professionals of Australia (PIPA). “Now that First Home Buyers aren’t as active as they were, investors are moving back in and this will encourage them even further with the lowest interest rates on record”.
Investment professionals reacted well to the news.
“It’s a very positive step,” said Julian Fadini, Director at Prpty 360. “With investors leveling the playing field back in line with the rest of the purchasers in the market, it’s great.”
“We operate in regional markets for about 7 years now, and we believe we were ahead of this curve and could see all that the regional areas had to offer. Being from a property investment place, it didn’t seem right that investors had to pay a premium, and it’s positive that that is starting to level out now. It’s good to see investors getting back into the market.”
“If we cast our minds back a few years ago, we were potentially facing the abolition of negative gearing and then we had the banking royal commission. For a while there, it wasn’t as attractive for investors. Now, with the different pricing and interest rates, it’s changed. It’s a very positive sign to see investors getting back into the market and the banks supporting them with this move.”
Mike Wood, Australian Broker, 28 May 2021