On Friday UBank decreased one investment home loan rate, while raising another one.
The Variable Investment home loan paying principal & interest (P&I) was cut to 2.55% p.a. (2.55% p.a. comparison rate*).
Both the advertised rate and comparison rate were cut by 19 basis points.
"We know Aussies are increasingly looking to invest in the property market and are pleased to offer this reduced variable rate to help make their investment goals a reality," UBank CEO Philippa Watson said.
Interestingly, the advertised interest rate on the 5 Year Fixed P&I loan for investors went up by 5 basis points, while the comparison rate went down 10 basis points.
The rate is now 2.54% p.a. (2.57% p.a. comparison rate*).
A UBank spokesperson said the comparison rate fell because the variable revert rate has been lowered, which is generally what the fixed interest rate reverts to once the fixed period ends.
To quote an iconic Australian ad, "My leg went that way, and my head went that way."
Investor activity in the property market has bounced back after a subdued few years.
The latest Australian Bureau of Statistics lending indicators data shows the value of investment loans written totalled $9.19 billion in June - a 102% increase from the same time the year prior.
It also increased 0.7% on the month, while owner occupier lending cooled slightly.
A survey from NAB - which owns UBank - shows for the second quarter of 2021, the share of local investors increased to 18%, up from 16.8% in the first quarter.
Photo by Nao Takabayashi on Unsplash