Lenders turn their attention to owner-occupiers

Mortgage lenders have spent the past couple of months adjusting rates and conditions on their investor loans but now they are turning their attention to the owner-occupiers segment, where they hope to find growth.

ING Direct announced yesterday that it had cut the variable rate on its Orange Advantage home loan by 14 basis points to 3.99 per cent for new owner-occupier borrowers who apply before October 31 and whose loan-to-valuation ratio is 80 per cent or less.

According to the comparison website Mozo, there are plenty more deals like that one for owner-occupiers.

HSBC has cut the variable rate of its Home Value Loan from 4.23 per cent to 3.99 per cent.

AMP's Essential Home Loan rate has been cut 11 basis points to 4.09 per cent and the basic variable rate has been cut 21 bps to 4.19 per cent. The two-year fixed rate on the basic loan has been cut 37 bps to 4.18 per cent.

Greater Building Society has cut 55 basis points off its owner-occupier basic variable home loan rate for new loans worth more than $150,000 and with loan to valuation ratios below 80 per cent. The rate is 4.09 per cent.

Macquarie Bank's best rate has moved to 4.19 per cent and is available for owner-occupier loans with balance above $750,000 and LVRs up to 80 per cent.

Mortgage House is offering a variable rate of 3.95 per cent for owner-occupiers borrowing more than $350,000 and with LVRs up to 80 per cent.