UBank offering 5-year investor rates for 3.49%



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More than a dozen lenders, large and small, are now offering investors five-year fixed rates for under 4 per cent.

UBank has priced its five-year Investor Fixed Rate at just 3.49 per cent (comparison rate 4.00 per cent), giving investors the chance to lock in a low rate for a long time.

Macquarie Bank’s Basic Home Loan five-year investment rate is 3.59 per cent (3.56 per cent).

Newcastle Permanent Building Society is offering its five-year Premium Plus Package Fixed Rate to investors at 3.69 per cent (4.42 per cent).

The other lenders with five-year investment rates under 4 per cent include well-known banks such as ANZ, Commonwealth Bank, NAB, Suncorp Bank and HSBC (see table below).

A range of challenger lenders are also offering cheap five-year fixed rates, including Australian Unity, Freedom Lend, G&C Mutual Bank, Greater Bank, P&N Bank and Qudos Bank.

Lender Product Advertised rate Comparison rate
UBank Investor Fixed Rate 3.49% 4.00%
Macquarie Bank Basic Home Loan 3.59% 3.56%
Newcastle Permanent Premium Plus Package Fixed Rate 3.69% 4.42%
P&N Bank Fixed Rate Home Loan 3.74% 4.18%
Australian Unity Wealth Builder Investor Package 3.89% 4.14%
Greater Bank Investment Great Rate 3.89% 4.22%
Qudos Bank Fixed Rate Home Loan 3.89% 4.24%
NAB Choice Package 3.89% 4.88%
Commonwealth Bank Wealth Package 3.89% 4.94%
Suncorp Bank Home Package Plus 3.89% 4.97%
HSBC Fixed Rate Loan 3.89% 4.91%
ANZ Fixed Rate Investment Loan 3.94% 4.97%
G&C Mutual Bank Fixed Rate Home Loan 3.99% 4.02%
Freedom Lend Freedom Fixed 3.99% 4.43%
RACQ Bank Choices Home Loan Package 3.99% 4.78%

Please note that the home loan with the lowest rate won’t necessarily be the best home loan for your situation. You should also weigh up things like fees and features when researching home loans.

Where to for home loan interest rates?

Every investor faces the difficult decision of whether to lock in a fixed rate or take a chance with a variable rate.

Nobody knows for sure what will happen to interest rates, but it is possible that the Reserve Bank of Australia will reduce official interest rates at its next meeting, on August 6.

If that happens, lenders might respond by further reducing their five-year investor interest rates, as well as their variable rates. (RateCity will provide live updates on its Rate Tracker page.)

Regardless, RBA governor Philip Lowe, in a speech last week, said “it is reasonable to expect an extended period of low interest rates”.

For more information, you can compare investment home loans at RateCity.

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