UBank joins Big Bank players in lifting rates for investors

By Rebeccah Elley · · 2 min read
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UBank has joined some of the major home loan players in Australia, increasing its interest rates by 29 basis points for investment loans and interest only home loans, which are notoriously popular amongst investors.

This 0.29% interest rate lift for investors will be effective from 10 August and brings the headline rate to 4.71%. For those investors with an existing UBank home loan, their interest rate will hike up by 0.29% from 10 September 2015.

The news comes as ANZ and the Commonwealth Bank recently lifted rates for investors and smaller provider AMP Bank announced it would no longer be accepting any applications from investors, while a range of other providers have reduced their loan to value requirements for investors.

The trend in lifting interest rates and reducing LVRs comes as a result of the Australian Prudential Regulation Authority announcing that lenders must reduce their investor loan books to under 10% growth each year. 

Lee Hatton CEO at UBank said they were responding to the changing market conditions and the pace of investor growth in the residential housing market.

“It’s a changing environment that we operate in and we are confident the steps we are taking are the right approach to further support our regulatory obligations and responsible lending practices.” 

“At a time of record low interest rates we encourage customers to maximise payments on their home loans,” explained Hatton.

Are you on the hunt for a competitive home loan? Then punch in your details into our home loan comparison tool to compare some of the best offers in the market now.

Home loan comparisons on Mozo - last updated 25 April 2024

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    Unloan Variable

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    Express Home Loan

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    6.01% p.a. variable
    6.14% p.a.

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  • Discounted Home Value Loan

    Owner Occupier, Principal & Interest, LVR 70-80%

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    6.09% p.a. variable
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    Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).

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  • Basic Home Loan

    Fixed, Investment, Interest Only, LVR <70%

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    6.49% p.a.
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  • Featured Product
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    Unloan Variable

    Investment, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.29% p.a. variable
    6.20% p.a.

    Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for investors. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.

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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

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