UBank cuts variable rate, hikes 5-year fixed rate

By Gerv Tacadena

UBank has become the latest lender to make changes to its investor interest rates.

UBank has become the latest lender to make changes to its investor interest rates.

The online lender shaved 19 basis points off its variable investor rate to 2.55% p.a (2.55% p.a. comparison rate)

This rate is available for investor loans with principal and interest rate (P&I) payment terms with an 80% loan-to-value ratio (LVR).

Interestingly, the online lender increased the advertised interest rate on its 5 Year Fixed P&I loan for investors by 5 basis points, while reducing the comparison rate by 10 basis points.

The rate is now 2.54% p.a. (2.57% p.a. comparison rate).

Here are some more lenders that adjusted their investment loan rates recently:

Greater Bank

Greater Bank has made some upward changes to its range of investment loan products. However, some of its fixed-rate offerings are still under 2% p.a. including the following:

Ultimate Discount Investment

  • P&I Fixed 1 Year (Min. of $150,000) - 1.89% p.a.
  • P&I Fixed 2 Year (Min. of $150,000) - 1.99% p.a.
  • IO Fixed 1 Year (Min. of $150,000) - 1.99% p.a.

Great Rate Discount Investment

  • P&I 1-Year Fixed (Min. of $150,000) - 1.89% p.a.
  • P&I 2-Year Fixed (Min. of $150,000) - 1.99% p.a.
  • IO 1-Year Fixed (Min. of $150,000) - 1.99% p.a.

Homestar Finance

Homestar Finance announced hikes across the revert rate of its fixed home loans for both 70% and 80% LVRs. The changes include:

  • Investment Star Fixed 70% LVR Revert Rate - 2.29% p.a.
  • Investment Star Fixed 80% LVR Revert Rate - 2.19% p.a.

Homestar Finance also made cuts of 15 basis points to 20 basis points to its Investment Star and Investment Star Classic line-up respectively.

86 400

86 400 lowered the rates of its Investment Neat Home Loan and Investment Own Home Loan. Some notable changes were the following:

  • Investment New Home Loan IO =60% LVR - lowered by 25 basis points to 2.59% p.a.
  • Investment Own Home Loan IO <60% LVR - lowered by 20 basis points to 2.79% p.a.

Get to know more about the most competitive investment rates here.

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