Changes to investor home loans

  • 2 November 2015

    In December 2014, the Australian Prudential Regulation Authority (APRA) announced a set of measures designed to ensure residential mortgage underwriting standards remain prudent, and to curb growth in investment lending to 10%.

    In addition to the changes announced in August and October, as part of our ongoing effort to support these measures, the Bank has made further product and policy changes to Investment Home Loans1 effective 2nd November 2015. The changes apply to new loan applications, as follows:

    Fixed Investment Home Loans—effective 2nd November 2015, the Bank has made the following changes to its fixed home loan interest rates for both principal and interest and interest only home loans for investors^. Refer to the below table for rate information1.

    Investor Home Loans
       Current Rates New Rates1 
    Fixed Home Loan Terms Interest rate p.a. Comparison rate p.a.2 Interest rate p.a Interest rate p.a change Comparison rate p.a.2
    1 year 4.15% 5.22% 4.60% +0.45% 5.27%
    2 year 4.19% 5.13% 4.62% +0.43%
    		 5.21%
    3 year 4.28% 5.06% 4.65% +0.37%
    		 5.16%
    4 year 4.49% 5.06% 4.76% +0.27% 5.15%
    5 years  4.57%  5.03% 4.84%   +0.27% 5.15% 

    There are no changes to interest rates for owner occupiers and all other lending rates remain unchanged.

    All previous Investment Home Loan product and policy changes remain in place as follows:

    • Loan Servicing – the Bank made changes to the method we use to calculate a member’s ability to service the loan.
    • Maximum Loan-to-Value (LVR) – for investment home loans, the LVR cannot exceed 85% before the capitalisation of the LMI premium.
    • Solutions Plus Home Loan Interest rate tier structure—Removal of the 2nd, 3rd & 4th rate tiers, and altering the 1st rate tier to $150,000+ for investors.

    For more information about our investment home loans please contact us here.

     

    1 Fees and charges and lending criteria apply. Consumer lending terms and conditions available here or from any of our offices. Interest rates effective 2nd November 2015. Rates quoted and all rates subject to change at any time at our discretion. Minimum loan amount is $25,000. For all fixed rate home loans, at the end of the fixed rate period the interest rate reverts to the Teachers Flexi Choice loan variable annual percentage rate. Any advice provided here does not take into consideration your objectives, financial situation, or needs, which you should consider before acting on any recommendations. For further information, contact us here or go to unibank.com.au.

    2 WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rate quoted is based on $150,000 for a term of 25 years. Rates apply to secured loans only.

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