UBank reduces fixed home loan rates for first time ever

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.

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 - last updated January 23, 2021

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure.
  • Smart Booster Home Loan

    1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.variable for 12 months and then 2.48% p.a. variable
    2.47% p.a.

    A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.

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  • mozo-experts-choice-2020
    UHomeLoan - Discount Offer

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.34% p.a. variable
    2.34% p.a.

    Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.

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  • mozo-experts-choice-2020
    Celebrate Variable Home Loan

    <60% LVR, Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    2.19% p.a. variable
    2.19% p.a.

    Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^

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    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    2.09% p.a.
    fixed 2 years
    2.56% p.a.

    Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.

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  • Fixed Home Loan Special Offer

    Owner Occupier, Principal & Interest, <80% LVR

    interest rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    fixed 2 years
    2.94% p.a.

    Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.

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    Details
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