UBank has cut investor home loan rates by 19bp
Online bank UBank has announced a number of variable and fixed home loan rate changes for property investors.
The new rates, which came into effect this morning, will apply to new UBank customers who are looking to make principal and interest repayments on an investment home loan. Here’s what the chnages and new rates look like:
- UHomeLoan - Investor Extra Offer: Reduced by 19 basis points to a new variable rate of 2.55% p.a. (2.55% p.a. comparison rate*) for investors with a maximum loan-to-value ratio (LVR) of 80%
- UHomeLoan (Fixed): 5-year fixed interest rate increased by 5 basis points to a new rate of 2.54% p.a. (2.57% p.a. comparison rate*) for investors with a maximum loan-to-value ratio (LVR) of 80%
“We’re committed to providing great rates to all our home loan customers, we know Aussies are increasingly looking to invest in the property market and are pleased to offer this reduced variable rate to help make their investment goals a reality,” said UBank chief executive, Philippa Watson.
But how do those new rates compare?
Well, the variable rate for investors with UBank’s UHomeLoan - Investor Extra Offer is now among the very lowest in the Mozo database and a considerable 106 basis points below the average variable rate for investors in our database which currently sits at 3.61%.
And despite the slight increase, the new 5-year fixed rate for investors with UBank’s UHomeLoan (Fixed) offer still remains the lowest rate in our database for that term length (<80% LVR).
The decision today means UBank joins a growing list of lenders which have recently sharpened variable home loan rates for investors, with the likes of 86 400, BOQ, Homestar, loans.com.au and Macquarie having all reduced select offers in the past month alone.
In fact, investor rates are at some of the lowest levels seen in years. Not only is the current average investor variable rate of 3.61% (<80% LVR) in the Mozo database 22 basis points below where it was in August last year, it’s the lowest point recorded since we began tracking in 2015.
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Looking to build your own investment portfolio? If you’ve already got your sights set on a property, you’ll probably need a home loan to seal the deal, and there’s no better place to view multiple loan deals in the one place than with our dedicated investment loan comparison hub.
Otherwise, get started straight away by checking out some of UBank’s great investor home loan offers with our mini reviews below.
UHomeLoan - Investor Extra Offer
- Low variable rates from 2.55% p.a. (2.55% p.a. comparison rate*)
- No loan fees
- Make extra repayments (for free)
Are you an investor looking for a seriously competitive variable rate on your mortgage? UBank’s UHomeLoan - Investor Extra Offer could deliver just that, with variable rates from just 2.55% p.a. (2.55% p.a. comparison rate*) for investors making principal and interest repayments (maximum loan-to-value ratio of 80%). UBank also allows borrowers to make extra repayments towards their loan for free, plus there are no upfront, ongoing or discharge fees.
UHomeLoan (Fixed)
- 3-year fixed rate of 2.09% p.a. (2.46% p.a. comparison rate*)
- Usual $395 Establishment fee waived (limited time only)
- Make up to $20k in extra repayments during the fixed term
Investors who like the idea of locking in a rate for 1, 3 or 5 years may prefer UBank’s UHomeLoan (Fixed). The loan offers fixed rates as low as 2.09% p.a. (2.46% p.a. comparison rate*) for a 3-year fixed term which is available to investors making principal and interest repayments (<80% LVR). Borrowers will also be able to make up to $20,000 worth of extra repayments towards their balance during the fixed period. And the loan doesn’t come with any ongoing or discharge fees, plus UBank is waiving the usual $395 establishment fee on fixed rate loans which are settled by 30 September, 2021.
* 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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