Fixed Rate Investment Loan (Interest Only) 5 Years
Cashback
$2,000 cashback when you switch your home loan to us- Last updated on 05 Jul 2020
Discount Variable Home Loan
Make the move to UBank's award winning home loan
2.59%
Variable
2.59%
Owner Occupier Discounted Variable Rate
3.44%
Fixed - 5 years
4.59%
$1,337
based on $300,000 loan amount for 25 years
Pros
- Parents can sign as guarantor
- Repayments will not change during fixed period
Cons
- Limited extra repayments
- No redraw and no offset
- Discharge fee at end of loan
- Repayments won't decrease if RBA cuts rates
Maximum LVR 80% | Interest rate structure Fixed - 5 years |
Borrowing range $10k - $100m | Total Repayments $309,600 |
Principal & interest | Interest only |
Loan term range 1 - 30 years | Offset account No |
Extra repayments Allowed with restrictions | Redraw facility |
Allows split interest | Suitable For Investors |
Applicable States ACT, NSW, NT, QLD, SA, TAS, VIC, WA | |
Total estimated upfront fees $800 | Application fee $600 |
Settlement fee $200 | Valuation fee $0 |
Legal fee $0 | Other upfront fee $0 |
Ongoing fee $8 monthly | Discharge fee $350 |
Property Type | SMSF Trustee |
Minimum SMSF Amount |
- Cashback $2,000 cashback when you switch your home loan to usFor refinancers who apply before 3 August 2020 and have their loan funded by 9 October 2020. Minimum refinance amount $250,000. This offer is not available for Bridging Loans. (Owner Occupied Interest Only customers who fund on or from Tuesday 7 April 2020 are eligible for the cashback)
Make your loan suit you with freedom to split your loan, rate lock and pay interest in advance. Lock in a great rate so you know what your repayments will be and can confidently plan for the future. Choose to pay Principal and Interest weekly, fortnightly or monthly. Or Interest Only monthly.
At the end of the fixed rate period, the loan converts to the Standard Variable Rate relevant to your loan purpose and repayment type at that time, or you can choose a new fixed rate period. $750 rate lock fee for each rate lock request. Interest Only payments available for up to 5 years for Owner Occupied Home Loans and up to 10 years for Investment Home Loans.
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Commbank home loan rates
As one of Australia’s largest banks and one of the biggest of the “Big 4”, Commonwealth Bank (CBA) doesn't always offer the lowest rates on the market, but is able to offer competitive home loan offers, including package deals with other financial products.
CBA has a variety of home loans available at a range of different interest rates. As a general rule, owner-occupiers get lower interest rates than investors; principal-and-interest borrowers get lower interest rates than interest-only borrowers; and borrowers with lower LVRs get lower interest rates than borrowers with higher LVRs.
Commonwealth Bank also puts different prices on its variable interest rates and its fixed interest rates. CBA’s fixed rate mortgages are available for either one, two, three, four, five or seven year terms. As a general rule, the longer you want to fix, the higher the interest rate.
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FAQs
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.