UBank has cut 3-year fixed home loan rate by 10bp

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Online bank UBank has lowered its 3-year fixed home loan rate for owner occupiers paying principal and interest.

The new rates came into effect this morning:

  • UHomeLoan Fixed 80% LVR: The 3-year fixed rate for owner occupiers decreased by 0.10% p.a., making rates start at a low 1.85% p.a. (2.24% p.a. comparison rate*)
  • UHomeLoan Fixed 85% LVR: The 3-year fixed rate for owner occupiers also lowered by 0.10% p.a. bringing it to a starting rate of 2.05% p.a. (2.41% p.a. comparison rate*). This loan does not require lenders mortgage insurance even at 85% LVR.

UBank chief executive officer Phillippa Watson said the bank regularly reviews its home loan rates to ensure it’s offering value to its customers. 

“Today we’re pleased to be reducing some of our already sharp fixed rates to market-leading lows,” said Watson.

In August, UBank also lowered their investor home loans by 19bp for new customers.

How do these new UBank rates compare?

For starters, the UHomeLoan Fixed 80% LVR is one of the lowest interest rates available in the Mozo database. The average fixed 3-year rate in Mozo’s database is currently at 2.33% making UBank’s new loan 48 basis points below the average fixed rate.

While the bank’s 85% LVR is only 28 bps below the 2.33% average, it's still amongst some of the lowest available rates in Mozo’s database as well.

RELATED: UBank named Australia’s best online bank

UBank is one of the many lenders recently slashing their interest rates. In the past year, interest rates have been some of the lowest they have been in years, which is why so many homeowners have been refinancing their mortgages.

If you are looking to buy a new property soon, check Mozo’s home loan comparison hub to find which loan is right for you.

UBank UHomeLoan (Fixed)
  • 3-year fixed rate starting at 1.85% p.a. (2.24% p.a. comparison rate*)
  • 2021 Mozo Experts Choice Award^ winner
  • No service or upfront fees (until 30 September 2022)
Find out more

If you are a homeowner or looking to be a homeowner, UBank's UHomeLoan (Fixed) is one of the lowest interest rates in Mozo’s database. The loan offers three different term options: 1, 3, or 5 years. You can borrow up to 85% of the property value and it is eligible for loans from $100,000 up to $2,000,000. Currently, the bank is waiving the normal $395 application fee for fixed home loans settled before 30 September 2022. 

A lender's mortgage insurance is not required for loans of 85% LVR, which may save potential customers extra money. With the UHomeLoan (Fixed), you can make free extra repayments up to $20,000, but with the lack of redraw facilities you will not be able to get the money back if you need it later on.

* 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. You can change the loan amount and term in the input boxes at the top of this table. 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 Loan Awards

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