UBank's new 1.99% variable home loan rate is its lowest ever

woman with cute dog excited for UBank's new home loan rate cut

UBank has announced a new cut to its UHomeLoan - Discount Offer variable rate, putting it 113 basis points (bp) below the average variable home loan rate for owner occupiers in Mozo’s database. 

UBank is an online bank backed by NAB and has been a lender known for its low home loan rates. In 2021 UBank won three separate Mozo Expert Choice Home Loan Awards for: Low Cost Home Loan, Split Home Loan and Investor Fixed Home Loan. 

According to chief executive, Philippa Watson, the new rate of 1.99% p.a. (1.99% p.a. comparison rate*) is the sharpest variable rate ever advertised by UBank.

“This is the lowest variable rate UBank has offered in our 13-year history, and we’re pleased to be offering it to new owner occupier customers who could save hundreds of dollars a month on their home loan repayments," she said.

“With new data showing the average family now spends 36.2 per cent of their income on loan repayments – the highest level since the market emerged from the global financial crisis in 2008 – it’s more important than ever for customers to review their current rate and check how much they could be saving."

This offer is only available for a limited time though, so we've wrapped up some of the important dates and loan details below.

UHomeLoan - Discount Offer
  • Ultra low 1.99% p.a. variable rate (1.99% p.a. comparison rate*) - limited time offer
  • Zero upfront or ongoing fees
  • Free extra repayments and redraw facility

UBank has made a name for itself over the years with its competitive rates, but the online bank has taken things to a whole new level with the latest offer on its UHomeLoan - Discount Offer. Owner occupiers with an <80% LVR will be able to snag a 1.99% p.a. variable rate (1.99% p.a. comparison rate*) - the lowest variable rate UBank has ever advertised! This is a limited time offer though, so to get the rate you’ll need to apply by January 31, 2022 and settle your loan by May 1, 2022. 

The interest rate isn’t the only part of the loan to write home about though. You’ll be able to make free extra repayments towards your loan balance and even dip into them down the track via the online redraw facility, but it’s worth noting that there’s no offset account available. Better still, you won’t have to worry about paying any upfront, ongoing or discharge fees with the loan.

How does UBank compare to other home loans?

For starters, the UBank UHomeLoan - Discount Offer with its variable rates starting from 1.99% p.a. (1.99% p.a. comparison rate*) for borrowers with a loan-to-value ratio below 80%, puts it 113 bps below the 3.12% average variable rate found in Mozo’s database. 

Perhaps even more relevant though is the fact that the new rate is among the very lowest on offer from lenders being tracked in our database, and one of the few home loans with a variable rate starting with a '1'. 

It is important to remember that the new rate is only available to new owner occupier customers who lodge an application before 31 January, 2022 and have it settled by 1 May, 2022 though. 

To find out more about this home loan, including all the features and rates involved read our UHomeLoan - Discount Offer review.

Otherwise, see how UBank’s home loan compares against some other great low variable rate loans in the table below or by visiting the Mozo home loan comparison hub.

Compare variable rate home loans - last updated 25 January 2022

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Mozo Expert Choice Badge
    Smart Booster Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.85% p.a.variable for 24 months and then 2.25% p.a.
    2.21% p.a.

    New super low introductory rate home loan for two years. Min 20% deposit. No monthly or ongoing fees. Fast settlement times. Mozo award-winning online lender. Friendly, local Australian based team.

    Details
  • Variable Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Same low variable rate for all. No upfront or ongoing fees. Approval in minutes not weeks with a fast digital application. 100% offset sub account with no account or redraw fees. Comes with a Visa debit card, mobile App, and digital wallet (Apple and Google Pay). Refinance only. 25% deposit or equity required.

    Details
  • Mozo Expert Choice Badge
    UHomeLoan - Discount Offer
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    1.99% p.a.

    Enjoy a super low rate. $0 fees to consider. Fast and easy online application. Free redraw and free extra repayments. Flexible payment terms. Min 20% deposit required.

    Details
  • Mozo Expert Choice Badge
    Celebrate Variable Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    1.89% p.a.
    1.89% 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.

    Details
  • Basic Home Loan
    variable rate
    comparison rate
    Initial monthly repayment
    2.14% p.a.
    2.14% p.a.

    Competitive low variable rate. No application or account management fees. Flexibility to split your loan and set different repayment types. Fee free withdrawals of your savings.

    Details
  • Mozo Expert Choice Badge
    Variable Home Loan Special
    variable rate
    comparison rate
    Initial monthly repayment
    1.99% p.a.
    2.02% p.a.

    Yard’s low-rate variable special home loan is packed with all features – unlimited additional repayments, free redraw, 100% offset account. Enjoy a simple online application. Special rate applies to home loan applications submitted by 31st January 2022. Low Cost Home Loan winner in the Mozo's Experts Choice award 2021.

    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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