UBank joins Big Bank players in lifting rates for investors
Article by Rebeccah Elley
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.
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