The National Australia Bank-owned lender has raised rates on some of its investor interest-only fixed home loans by 0.20 percentage points, however UBank’s owner-occupier home loan rates have not changed.
UBank also says the rate hikes affect new customers and not existing ones.
The changes are as follows:
This follows recent home loan hikes from Bank of Queensland and Virgin Money, with both lenders saying they were forced to lift rates amid higher funding costs.
UBank has not offered a reason for the hikes, other than that it regularly reviews its rates.
Virgin Money’s hikes are also by 0.20 percentage points and applies to a number of its existing investor and owner-occupier home loans, while BOQ has increased some of its rates by 0.18 percentage points for owner-occupiers and investors.
Meanwhile, Commonwealth-owned Bankwest reduced a number of its owner-occupier home loan rates by 0.13 percentage points and 0.18 percentage points in early January for new borrowers, including its Complete Variable Home Loan P&I rate down from 3.85% to 3.72% (comparison rate of 4.15%).
Citi has launched a new home loan offer called Citibank Basic Home Loan for owner-occupiers and investors.
The owner-occupiers loan has a 3.55% interest rate (comparison rate 3.60%) and the investor loan has a 3.89% rate (comparison rate of 3.94%).
Lenders have been making out-of-cycle hikes and cuts over the past two years, even though the Reserve Bank of Australia has kept the cash rate steady since it cut the rate to a record low of 1.5% in August 2016.