UBank reduces fixed home loan rates for first time ever

By Kelly Emmerton ·
Fact Checked
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UBank has reduced its UHomeLoan fixed rates for one and three year terms to just 3.99% for the first time since its inception in 2008. The change represented a significant drop of 0.48% for 1 year fixed terms and 0.38% for 3 year terms.

Compared to the average rate of 4.32% for a fixed 3 year loan, the new 3.99% rate gives Aussie customers the chance to save thousands. For example, Mozo’s home loan comparison calculator shows that on a loan of $400,000, borrowers could save over $2,000 in interest over a three year period by opting for UBank’s new low rate.

RELATED: Choosing a home loan lender

Lee Hatton, CEO of UBank, said the rate reduction was in line with the bank’s promise to be “Just the Bank You Need".

“We’re delivering simpler, better, smarter banking to our customers and our aim is to deliver market leading rates across the board,” she said. “Our pricing simplification gives UBank a major competitive advantage, and provides Australians with reassurance in a volatile environment.”

According to UBank consumer driven trends show that the beginning of the year is a popular time for Aussies to review their home loan rate. 

“What really drove this decision was to offer one of the lowest rates around for people looking to refinance at the start of the year, as they review their goals and make healthy changes to their finances,” Hatton added.

Whether you’re refinancing or buying your first home, check out Mozo’s handy comparison table to find the best deals around.

Home loan comparisons on Mozo - rates updated daily

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • placeholder
    Mozo Experts Choice 2021
    UHomeLoan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.19% p.a.

    $0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.

    Go to site
    Details
  • Hot DealFor a chance to win $100K towards your home loan, apply with Athena before Oct 31 & approved by Dec 15 (Please read the full T&C's)
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    Mozo Experts Choice 2021
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Fast and efficient online application. Automatic discounts as loan is paid down. Free extra repayments and redraw facility. Zero fees. Min 40% deposit required. Winner of three Mozo Expert's Choice Awards for 2021.

    Go to site
    Details
  • placeholder
    Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.32% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Go to site
    Details
  • placeholder
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 3 years
    2.87% p.a.

    Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).

    Go to site
    Details
  • placeholder
    Variable Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a. variable
    1.99% p.a.

    Refinance only. Super-fast digital application process. Zero upfront fees. No on-going service fees. Free 100% offset sub account. Minimum 25% deposit required.

    Go to site
    Details

* 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, loan amount and term entered. 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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