After the RBA moved to reduce official interest rates by 0.25%, UBank announced it will be cutting variable rates in kind, making this the fourth time the online bank has passed on the full rate cut to its customers.
The changes will come into effect 3 April, and will apply for both new and existing customers, as well as anyone who’s in the process of applying for or settling a new variable rate.
Once in place, the UBank UHomeLoan Discount Offer will be sporting rates as low as 2.59% p.a. (2.59% p.a. comparison rate*). That means existing customers paying off a loan of $400,000 over 25 years could see savings of around $82 a month, or $984 over the year.
• 0.25% reduction to UHome Loans Discount Offer for owner occupiers making principal and interest repayments on a loan of at least $200,000. Rates now sit at 2.59% p.a. (2.59% p.a. comparison rate*).
• 0.25% reduction to UHome Loans Discount Offer for owner occupiers making interest-only repayments. Rates now sit at 2.13% p.a. (2.13% p.a. comparison rate*).
• 0.25% reduction to UHome Loan Investor Extra Offer for investors making principal and interest repayments. Rates now sit at 2.99% (2.99% comparison rate*).
• 0.25% reduction to UHome Loan Investor Extra Offer for investors making interest-only repayments. Rates now sit at 3.44% (3.44% comparison rate*).
RELATED: Which home loan lenders have already passed on the March RBA cut?
Since the RBA reduced official interest rates yesterday lenders have been scrambling to revise their own rate sheets. So far, it’s been nothing but good news for mortgage holders, with 19 providers tracked by Mozo announcing they will be passing on the full 0.25% cut to their variable home loan customers.
Surprisingly, that includes all four major banks. After Westpac made the shock announcement just a few short minutes of the RBA’s decision, CommBank, NAB and ANZ quickly fell in line.
Meanwhile, online banks have been doing their best to draw customers away from the big four. Athena, Homestar and newcomer 86 400 were all among the first wave of lenders that quickly announced plans to pass on the full cut.
So if you’re looking to refinance, online lenders represent an appealing option. We’ve included an overview of the UBank UHomeLoan below, but if you want to compare its rates and features against other offerings, head over to our home loan comparison page.