The rate cut frenzy continues, with UBank the latest lender to jump on board the trend, slashing it’s fixed rate UHomeLoan by up to 0.60% today and debuting a jaw dropping new rate.
After the RBA dropped the official cash rate to a historic low 1.25%, many lenders have been slashing interest rates along with it - but few have gone as low as the new 2.99% (4.09% comparison rate*) on offer from UBank for a 1 year fixed term.
2.99% fixed rate for 1 year term (4.09% comparison rate*)
Mozo Experts Choice Fixed Rate Home Loan Award winner 2019
Now with even lower fixed rates than before (and it was competitive to start with!) the UBank UHomeLoan should be a strong contender on your home loan shortlist. But it’s not just about the low rates on offer - you’ll also be able to make free extra repayments, borrow up to $2 million and have the option to split your loan between fixed and variable rates. One thing to make sure you budget for is the once-off $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.
UBank cut rates on its UHomeLoan for terms of 1, 3 and 5 years, for both owner occupiers and investors, on both principal and interest and interest-only loans. The rate cuts are effective immediately from 14 June 2019, and only apply to new borrowers.
Mozo banking expert Peter Marshall has cautioned borrowers that there could be even lower rates to come if another RBA rate cut happens this year. But if you’re keen to lock in a low rate, one solution could be to opt for a split rate loan. This means you fix a portion of your loan at a certain rate, then the rest of your loan is on a variable rate, and benefits from any future rate cuts. A split rate feature is available with the UBank UhomeLoan fixed rate offer.