UBank home loan cuts make history

Tom Watson

10 Jul 2020

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UBank has taken the axe to home loan rates once again, announcing cuts of between 10-15 basis points on variable loans for both new and existing borrowers. This follows cuts to select fixed rates earlier this week. 

From 17 July, new borrowers with the online lender can snag a rate of just 2.49% (2.49% comparison rate*) on the UHomeLoan - Discount Offer which, according to UBank, is the lowest advertised home loan rate it has offered in its 11-year history. 

“Owning your own home can be incredibly rewarding but the past six months have caused many Aussie home owners to feel the pinch,” said UBank chief executive, Philippa Watson. 

“We are glad to have supported so many of our home loan customers by offering repayment pauses to those who have needed some extra help during this time, and today’s announcement is an extension of that support.”

Here’s a full breakdown of UBank’s recent rate changes: 

0.10% cut: To variable rate home loans for investors making principal and interest repayments and owner-occupiers making either principal and interest or interest only repayments. Effective from 17 July.

0.15% cut: To variable rates for investors making interest only repayments. Effective from 17 July.

0.15% cut: To 1-year and 3-year fixed rate offers. Effective from 8 July. 

The cut means that the UHomeLoan - Discount Offer, with its variable rate of 2.49% (2.49% comparison rate*), will likely sit among the ten lowest variable rates in the Mozo database.   

Similarly, the 2.14% (3.10% comparison rate*) 1-year fixed and 2.14% (2.59% comparison rate*) 3-year fixed rates available with UBank’s UHomeLoan (Fixed) are now among the five lowest fixed rates in our database for their respective terms. 

Interested in a more detailed look at some of the key components of those two loans? Check out our mini reviews below:

Promoted

UBank UHomeLoan - Discount Offer
  • Seriously low variable rate

  • Zero fees

  • Free extra repayments and redraws

Currently offering a variable rate of 2.59% (2.59% p.a. comparison rate*) to owner occupiers on loans over $200,000, UBank’s ultra-low rate will fall even lower to 2.49% (2.49% p.a. comparison rate*) for new borrowers from 17 July. Aside from the competitive rate, the UHomeLoan - Discount Offer comes with zero fees, plus borrowers will even be able to make free extra repayments towards the loan and redraw those repayments down the track (if they need to). 

Promoted

UBank UHomeLoan
  • 2.14% (2.59% comparison rate*) 3-year fixed rate

  • Free extra repayments up to $20k p.a.

  • No ongoing fees

Fixed rates don’t get much lower than those available with UBank’s UHomeLoan (Fixed) offer, with rates as low as 2.14% (2.59% comparison rate*) for borrowers happy to lock in for three years. Owner-occupier borrowers will be able to grab that rate on loans between $100,000 and $2,000,000 and while there is an initial $395 application fee to consider, there are no other fees to worry about. UBank even lets customers make extra repayments towards the loan of up to $20k per year, for free!

*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.

For even more home loans offers and the latest rates, make sure you pay a visit to the Mozo home loan comparison hub where we compare over 80 different Australian lenders.

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