National Australia Bank's white label mortgage business, Advantedge, has started offering different rates for owner-occupiers and investors, with owner-occupiers receiving a bigger discount to the standard variable rate.
Fairfax Media reported that the bank made the changes this month, as it seeks to shift the balance of its new mortgage business away from the investor market.
The Australian reported that the practice could become widespread. It quoted an executive from mortgage aggregator AFG, who said banks have started taking action to rein in investor loan volumes and that price was "the lever" that would get the most immediate response.
The Australian Prudential Regulation Authority warned banks last December that it did not want to seen investor property loans growing by more than 10 per cent a year. The banks have been prompted to act by recent data showing that investor property lending continues to grow strongly.