UBank reduces fixed home loan rates for first time ever
Article by Kelly Emmerton
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.
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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.