UBank is tinkering with rates for investment house loans

UBank is tinkering with rates for investment house loans

On Friday, UBank cut an investment home loan rate while raising another.
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The Variable investment the repayment of principal and interest (P&I) for home loans was reduced to 2.55% per annum (comparison rate of 2.55% per annum*).

Both the advertised and comparator interest rates were reduced by 19 basis points.

“We know that Aussies are increasingly seeking investment in the real estate market and are pleased to offer this reduced floating rate to help meet their investment goals,” said Philippa Watson, CEO of UBank.

Interestingly, the advertised interest rate on the 5 years fixed The investor P&I loan rose by 5 basis points, while the benchmark rate fell by 10 basis points.

The rate is now 2.54% per year (2.57% per year comparison rate*).

A UBank spokesperson said the comparative interest rate has fallen because the floating fallback rate has been reduced, which is generally what the fixed interest rate is. returns until the fixed period expires.

To quote an iconic Australian ad, “My leg went that way and my head went that way.”

See also: The $35,000 Potential Cost of Breaking a Fixed Home Loan

Investor activity in the real estate market has picked up again after a few subdued years.

The latest Australian Bureau of Statistics loan indicators data shows that the value of the investment loans issued in June was $9.19 billion, up 102% from the same time the year before.

It also rose 0.7% month-on-month, while lending to owner-occupiers cooled slightly.

A survey by NAB – which owns UBank – shows for the second quarter of 2021 that the share of local investors has increased to 18%, from 16.8% in the first quarter.

Photo by Nao Takabayashi on Unsplash

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