Suncorp Group Ltd is the first bank to lower investor mortgage rates

Suncorp Group Ltd (ASX: SUN) is the first of the banks to lower interest rates for investor loans in housing, following the removal of the 10% annual cap by the Australian Prudential Regulation. The cap, imposed in 2014 to try and cool the overheated property market, will no longer apply to Authorised Deposit-taking Institutions on the back of improved lending standards. The cap successfully led to lower annual growth in investor housing credit. The cap of 30% on interest-only loans relative to totally new mortgages remains in place.

Suncorp, which provides banking, insurance and wealth management, is trading on forward price- earnings-ratio of 18x and is paying fully franked annual dividend of 5%.

While, Insurance Australia Group Ltd (ASX: IAG), a general insurance group operating in Australia, New Zealand and Asia, is trading on a forward PER of 19x and is paying an annual dividend yield of 4%, fully franked.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool's dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Rosemary Steinfort owns shares of Suncorp Group Limited. The Motley Fool Australia owns shares of Insurance Australia Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.