AMP cuts fixed home loan rates while UBank increases

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on April 30, 2021
AMP cuts fixed home loan rates while UBank increases

Two more key lenders have changed fixed home loan rates this week, with one increasing and the other decreasing.

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. 


The table below displays a snapshot of some of the lowest fixed home loan rates from a variety of lenders.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

FixedMore details
No ongoing feesFree redraw facility

Live-in Fixed Loan (Principal and Interest) 1 Year

No ongoing feesFree redraw facility
FixedMore details
NO UPFRONT OR ONGOING FEES

Basic Home Loan Fixed (Principal and Interest) (LVR < 70%) 3 Years

NO UPFRONT OR ONGOING FEES
FixedMore details

Fixed Rate Home Loan (Principal and Interest) 3 Years

FixedMore details

Tailored Home Loan Fixed (Interest Only in Advance) 2 Years

FixedMore details

Fixed Options Home Loan (Interest Only) 2 Years (LVR < 70%)

FixedMore details

Fixed Rate Home Loan (Interest Only) 4 Years (LVR > 80%)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of January 17, 2022. View disclaimer.

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

 

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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