Fixed rate upheaval: UBank slashes 1, 3 and 5 year home loans

Fixed rate upheaval ubank slashes 1 3 and 5 year home loans content

Online lender UBank has made a host of changes, effective today, to its suite of fixed home loan offerings, cutting rates by up to 0.25% for owner occupiers and a whopping 0.50% for investors.  

Among the highlights for owner occupiers, UBank’s UHomeLoan (Fixed) offer for borrowers making principal and interest repayments has dropped to just 2.99% (3.63% comparison rate*) for three year fixed terms and 3.19% (3.59% comparison rate*) for five year fixed terms.

UBank UHomeLoan
  • 2.99% fixed rate for 3 year terms (3.63% comparison rate*)

  • 2019 Mozo Experts Choice Fixed Rate Home Loan Award

  • Free extra repayments (up to $20,000 p.a.)

With some of the lowest offers around for 1, 3 and 5 year terms, the UBank UHomeLoan (Fixed) could be the fixed rate option borrowers have been looking for. UBank's offer provides more than just low fixed rates, as you'll also be able to make free extra repayments (up to $20,000 each year), split your rate, and avoid paying any ongoing service fees. The only fee you will need to budget for is the $395 application fee. 

*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home loans Awards

UBank’s one year UHomeLoan (Fixed) rate offer for owner occupiers has remained steady at 2.99% (3.86% comparison rate*), but this is perhaps unsurprising given that it was cut by 0.60% last month following the RBA’s June rate cut. 

UBank UHomeLoan (Fixed) owner occupier rate changes

The latest changes mean that UBank are now offering some of the most competitive fixed rates for owner occupiers in the Mozo database. 

In fact, as of the time of writing, the UHomeLoan (Fixed) deal is now offering the second lowest rate in the Mozo database for 1 year and 3 year terms, while the 5 year term rate is now the lowest in the database.   

RELATED: These 6 home loan lenders passed on the full RBA cut twice

Investors looking to temporarily lock in a rate may also be happy with the latest changes as UBank reduced select fixed rates for investors by between 0.25% and 0.50%. 

UBank UHomeLoan (Fixed) rates for investors making principal and interest repayments now sit at 3.14% (4.32% comparison rate*) for 1 year terms, 3.14% (4.03% comparison rate*) for 3 year terms and 3.49% (4.00% comparison rate*) for 5 year terms. 

Ready to lock in a fixed rate for yourself? Check out our UBank UHomeLoan (Fixed) review for all the features and fees you’ll want to know about, or head over to Mozo’s Fixed Rate Home Loan Comparison Hub for even more options.