UBank drops its home loan interest rate to 4.54% for new applications

Online only mortgage provider UBank has slashed the rate on its UHomeLoan to 4.54% by 0.33% for the life of the loan, for new applications from Friday 7 November 2014.

UBank said the new rate will save customers up to $268 in monthly repayments and almost $100,000 in interest repayments on a $300,000 mortgage, when compared to the standard variable rates of the major banks.

The only other home loan lender in the financial market to offer such a competitive variable interest rate is (another online only provider) with the same 4.54%.

The news comes as the Reserve Bank of Australia Board left the official cash rate a steady 2.5% on Melbourne Cup Day. UBank general manager Alex Twigg said there’s never been a better time to take advantage of the bank’s new offer, especially when you consider interest rates are at record lows and there’s strong momentum in the housing market.

“UBank is unashamedly competitive and we’re intent on maintaining our leadership position. Our new discounted mortgage rate gives Australians the opportunity to benefit over the longer term,” Twigg said.

“The fact that we don’t have the same costs as a traditional bank allows us to pass these savings straight on to our customers, which translates to low fees and great rates.”