As of today, online bank UBank, owned by NAB, increased one of its fixed home loan rates by 10 basis points, while AMP cut a number of its own fixed products by 11. 

These changes follow the substantial four and five-year fixed rate increases by Westpac on Wednesday, and are the latest in a slew of changes made to fixed mortgages in recent months. 

UBank home loan rate increases 

Today UBank raised the interest rate on a single fixed home loan by 10 basis points. 

The UHomeLoan Fixed three-year loan with principal and interest (P&I) repayments has had its interest rate increased to 1.85% p.a from 1.75% p.a (comparison rate 2.24% p.a comparison rate*). 

This change applies to owner-occupiers only, and is available for customers with a maximum LVR of 80 (20% deposit minimum). 

Just this week, NAB, which owns UBank, had its purchase of neobank 86 400 confirmed, meaning 86 400 and UBank will eventually be merged together. 

UBank last changed home loan interest rates in January 2021, when it cut shorter-term fixed rates by 20 basis points. 

Related: Why are some fixed rates rising, despite the cash rate staying low? 

AMP home loan rate decreases 

Continuing the trend of shorter fixed-term interest rates staying low, AMP today cut a number of one to three-year fixed rates by up to 11 basis points. 

The 'Basic Fixed' and 'Professional Package Residential Fixed' mortgages saw interest rate haircuts, as long as the borrower is an owner-occupier with a minimum 10% deposit on P&I repayments. 

AMP's changes include the following: 

  • Basic Fixed P&I 2 yrs: 11 basis point cut to 2.08% p.a (2.78% p.a comparison rate*)
  • Basic Fixed P&I 3 yrs: 10 basis point cut to 2.09% p.a (2.72% p.a comparison rate*)
  • Professional Package Residential Fixed P&I 2 yrs 80% LVR: 11 basis point cut to 1.88% p.a (2.84% p.a comparison rate*)
  • Professional Package Residential Fixed P&I 2 yrs 80-90% LVR: 11 basis point cut to 1.98% p.a (3.10% p.a comparison rate*)
  • Professional Package Residential Fixed P&I 3 yrs 80% LVR: 11 basis point cut to 1.88% p.a (2.77% p.a comparison rate*)
  • Professional Package Residential Fixed P&I 3 yrs 80-90% LVR: 11 basis point cut to 1.98% p.a (3.01% p.a comparison rate*)

Related: What is a package home loan? 

Just a week prior AMP also took the axe to fixed interest rates for investors and interest-only (IO) borrowers:

  • Professional Package Investment Fixed P&I 2 years with 80% LVR: Cut by 25 basis points to 2.24% p.a. (3.72% p.a. comparison rate*)
  • Professional Package Investment Fixed P&I 2 years with 90% LVR and LMI: Cut by 25 basis points to 2.34% p.a. (3.74% p.a. comparison rate*)
  • Investment Basic Fixed P&I 2 years: Cut by 25 basis points to 2.44% p.a. (3.15% p.a. comparison rate*)
  • Professional Package Investment Fixed IO 2 years: Cut by 24 basis points to 2.44% p.a. (3.34% p.a. comparison rate*)
  • Investment Basic Fixed IO 2 years: Cut by 24 basis points to 2.54 p.a. (3.17% p.a. comparison rate*)

In April AMP also changed the total interest rate on its AMP Saver Account by increasing it 40 basis points to 1.25% p.a, which is now one of the market-leading rates for savings accounts. 

IMB, BCU among the other recent rate changes 

Not to be outdone, smaller lenders IMB and BCU cut various fixed interest rates. 

On Wednesday, IMB lowered the interest rate on its fixed investment loan for three-years (P&I) by 14 basis points, to a new rate of 2.35% p.a (3.33% p.a comparison rate*).

BCU meanwhile made the following rate changes: 

  • Residential Fixed P&I 1 year: Cut by 31 basis points to 1.67% p.a. (3.84% p.a. comparison rate*)
  • Investment Fixed P&I 1 year: Cut by 31 basis points to 1.87% p.a. (4.00% p.a. comparison rate*)
  • Investment Fixed IO 1 year: Cut by 31 basis points to 1.97% p.a. (4.01% p.a. comparison rate*)
  • Residential Fixed P&I 2 years: Cut by 20 basis points to 1.78% p.a. (3.66% p.a. comparison rate*)
  • Investment Fixed P&I 2 years: Cut by 20 basis points to 1.98% p.a. (3.82% p.a. comparison rate*)

Related: Experts warn of 'dangerous' fixed loan frenzy

Photo by Naseem Buras on Unsplash

 



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