UBank, Bendigo Bank among latest lenders to announce cuts

UBank customers who logged onto the UBank app over the weekend were greeted by some pleasant news: the online bank has opted to pass on the RBA’s cut in full to its variable home loan customers.

The decision will see rates for UBank’s popular UHomeLoan drop as low as 3.09% p.a. (3.09% p.a. comparison rate*). Both new and existing customers will be able to enjoy the new rates, but unfortunately, there will be a bit of a wait — the changes will come into effect on 2 August.

Once in place, owner occupiers paying off a $400,000 UHomeLoan (Discount Offer) over 30 years can expect to save $55 each month, or $660 over a year thanks to the new rate.

Bendigo Bank, MyState Bank reduce rates by 0.20%

Decisions from other lenders in the past few days have been a bit of a mixed bag. Bendigo Bank announced it will be reducing rates by 0.20% for owner occupiers and 0.15% for investors. The changes will take effect on 29 July, and will apply to new and existing customers.

Bendigo Bank Managing Director, Marnie Baker said the decision aims to balance the interests of a variety of stakeholders, and uphold “the strength of our national network which supports the prosperity of communities across the country.”

Meanwhile, MyState Bank also revealed it will be decreasing variable rates by 0.20%. The new rates will be available to new customers on 15 July, while existing customers will have to wait until 29 July for relief to come their way.

Who else has made cuts?

Bank Australia also made moves over the weekend, announcing it will be reducing variable rates by 0.16%. The changes will take effect on 22 July, and will apply to all owner occupiers and investors.

We saw a similar move from Bank of Queensland and Virgin Money, who both announced plans to reduce variable rates for new and existing customers by 0.15% on 23 July. 

Decisions like these aren’t likely to be appreciated by home loan customers, but will come as welcome news to savers. After all, when banks make reductions to home loan rates in the wake of an RBA decision, cuts to savings accounts and term deposits usually follow.

As Lyn McGrath, Group Executive of Retail Banking at BOQ put it, “With interest rates now at historical lows, it is critical that we balance our ongoing support for borrowers with those of our depositors.” 

Nonetheless, if you’re unsatisfied with your bank’s decision, or believe the home loan rates on offer elsewhere are more worthy of your attention, be sure to head to our variable rate home loan comparison page, or check out some of the options below.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a.
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required. Winner of two Mozo Expert's Choice Award for 2021.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Owner Occupier, LVR<80%, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.64% p.a.
    2.64% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

    Go to site
    Details
  • placeholder
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.34% p.a.
    2.34% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Go to site
    Details
  • placeholder
    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.19% p.a.
    2.19% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid off. Free extra repayments and redraw facility. Zero fees to consider. Min 40% deposit required. Winner of three Mozo Expert's Choice Award for 2021.

    Go to site
    Details
  • placeholder
    Back to Basics Special

    LVR<80%, Owner Occupier, Principal & Interest

    variable rate
    comparison rate
    Initial monthly repayment
    2.44% p.a.
    2.45% p.a.

    No monthly account keeping fee, no ongoing annual fee and no loan establishment fee on new lending of $150,000 or more.

    Go to site
    Details

*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 $150,000 over 25 years.

**Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. 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

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