UBank passes on full cut following March RBA decision

Niko Iliakis

04 Mar 2020

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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.

The changes

• 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. 

Promoted

UBank UHomeLoan - Discount Offer
  • 2.59% p.a. for loans over $200,000 (2.59% p.a. comparison rate*) - Apply now to get this rate as of 3 April

  • Free extra repayments and redraw facility

  • No annual fees

There’s a lot to like about the UHome Loan Discount Offer already, but after March’s rate cut it will be looking a whole lot sharper. As of 3 April, owner occupiers will be able to take advantage of rates starting at 2.59% p.a. (2.59% p.a. comparison rate*). What’s more, fees have been kept to a minimum, you can choose between weekly, fortnightly or monthly repayments, and you’ll be able to pay down your loan faster without being slapped with any fees. You’ll also get access to a free redraw facility if you want to retrieve those extra repayments down the track.

*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.

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