Ubanks new home loan to waive lenders mortgage insurance for 15 percent deposits

UBank’s new home loan to waive lenders mortgage insurance for 15% deposits

Monday, 10 May 2021

Saving for a 20% deposit could take more than four years for the average Australian, but online lender UBank is offering a solution to help home buyers get into the market sooner. UBank today announced it will provide home loans of up to 85% loan-to-value ratio (LVR) for owner occupiers, without charging an extra cost known as Lenders Mortgage Insurance (LMI). LMI is usually required if you’re borrowing more than 80% of the property value, and this expense can add up to tens of thousands of dollars. One common way to waive LMI is to have a guarantor - usually that’s your parents or the government via its First Home Loan Deposit Scheme. But if neither option fits your situation, UBank’s new loan will give eligible borrowers with at least a 15% deposit another avenue for avoiding LMI. For customers with LVRs ranging from over 80% up to 85%, UBanks is introducing a variable rate of 2.49% (2.49% comparison rate*), available to owner occupiers making principal and interest repayments. Alternatively, the same borrower group could snag a three-year fixed rate of 2.05% (2.41% comparison rate*).These are ultra low rates compared to the rest of the Mozo database, sitting 78 basis points below the variable rate average (3.27%) and 27 basis points below the three-year fixed rate average (2.32%) for 80% LVR owner occupier loans.

Home loan refinancing levels ramping up: ABS

Last updated Friday, 7 May 2021

New figures released by the Australian Bureau of Statistics (ABS) on Tuesday show that the number of Australian homeowners who are switching their mortgages is on the rise.

House prices are still rising, but at a less frantic pace: Corelogic

Last updated Tuesday, 4 May 2021

The value of Australian property has jumped higher once again according to new data, though the rate of increase has slowed down compared to previous months.

Gateway Bank introduces monthly LMI option for low deposit home buyers

Last updated Wednesday, 28 April 2021

There’s a common conundrum for many first time home buyers in Australia: save up for a 20% home loan deposit or purchase sooner with the added cost of lenders mortgage insurance (LMI).

Do you have a 5% deposit ready? This home loan might work for you

Tuesday, 13 April 2021

As property prices continue to surge at record rates, saving for a first home deposit has only gotten harder. New research reveals that Sydneysiders are feeling this financial strain the most, with a $100,000 deposit no longer enough to fetch them a median-priced property. According to online lender homeloans.com.au, home buyers in NSW with a 5% deposit of $100,000 may only be able to fund properties of up to $780,000. This falls a massive $115,933 short of the current median property price for Sydney. Meanwhile Victorian buyers with the same-sized deposits are estimated to be able to afford properties of up to $710,000 - just shy of Melbourne’s median price of $717,767. However, for all other capital cities, home buyers with a 5% deposit of $100,000 could comfortably buy a median-priced property in the area.

Home loan check-in: Are fixed rates on their way back up?

Wednesday, 7 April 2021

Ultra-cheap fixed rates have fuelled a rush to the property market and sent home values soaring, but a number of banks have begun increasing long-term fixed offerings, suggesting a market slowdown might be just around the corner. With the RBA’s term funding facility due to end in the second half of the year, longer term fixed rates will likely drift upwards, meaning the current interest rate environment might look a lot different in just a few months’ time.So far, the Commonwealth Bank has been the only major bank to reverse course. It lifted 4-year rates for its Fixed Rate Wealth Package by 20 basis points to 2.19% p.a. (3.73% p.a. comparison rate*), citing increased funding costs.Bank of Queensland also raised 4- and 5-year rates by 20 basis points at the same time it cut its 2-year offering. 4-year rates now sit at 2.29% p.a. (3.00% p.a. comparison rate*).Meanwhile, Teachers Mutual Bank increased 4-year rates by 19 basis points and 5-year rates by 34 basis points across its associated brands. More banks and lenders are expected to follow.Typically, only around 15% of mortgages are fixed, but the combination of rock-bottom rates and predictable payments have attracted plenty of borrowers in the past year, Right now, fixed rates account for more than one-third of new mortgages.At the time of writing, the lowest fixed rate offers among lenders we track are:

Banks cut fixed rates to record breaking lows

Saturday, 3 April 2021

There’s great news for Australian borrowers and refinancers this month with a continuing downward trend in home loan interest rates driven by lenders cutting fixed home loans to all new record-breaking lows.

April cashback deals: Up to $3,288 on offer to home loan refinancers

Last updated Thursday, 1 April 2021

The home loan market is running red hot, with plenty of competition from banks and other lenders on both fixed and variable offers. Rates are already at some of the lowest levels we’ve seen though, so in order to stand out some lenders are rolling out additional incentives, including cashback deals.

CBA drops 2-year fixed home loan rate to new low

Last updated Monday, 22 March 2021

The Commonwealth Bank has announced a number of changes to its fixed rate home loans this morning, including a new low rate of 1.94% (3.93% comparison rate*) for owner occupier borrowers on a 2-year fixed term.

Athena wins 2021 Mozo Experts Choice Award for Home Loan Innovation again!

Thursday, 18 March 2021

Athena has done it again in 2021! For the second year running, the online lender has snapped up a Mozo Experts Choice Award for Home Loan Innovation. And this time around it's for the AcceleRATES home loan that was introduced last year. “Athena has proven again that it is an innovative lender as it continues to offer competitive rates to customers in new ways,” said Mozo Expert Judge, Peter Marshall. “As judges, we were impressed by the AcceleRATES feature which automatically decreases the variable rate on the loan as the balance is paid down and a customer’s loan-to-value ratio lessens.” Marshall explains that what stood out to the experts this year was the fact that as customers pay down their debt, Athena ensures that they are offering the home loan lowest rate available from the lender. “This is a well-deserved win by Athena for the second year in a row. Unlike some other lenders that reserve their top rates for new customers only, AcceleRATES means existing customers also benefit from lowering their LVR and staying loyal.” On top of the Home Loan Innovation Award, Athena also took home two additional 2021 Mozo Experts Choice Awards in the Low Cost Loan and Investor Loan categories.

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