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

By Tom Watson and Maria Gil
Fact Checked
Advertiser disclosure
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.

Important disclosures and comparison rate warning*
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
Find out more

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.

Last updated 22 May 2025 Important disclosures and comparison rate warning*
What are your home loan needs?
Loan purpose
Buying or Refinancing
  • Promoted

    Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees
  • Promoted

    Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes
  • Promoted

    Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.49 % p.a.
    Variable
    Comparison rate
    5.40 % p.a.
    Initial monthly repayment
    $2,836
    Go to site
    • RATE CUT NOW LIVE!
    • The first home loan with an increasing discount (conditions apply)
    • No application or banking fees

  • Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.69 % p.a.
    Variable
    Comparison rate
    5.70 % p.a.
    Initial monthly repayment
    $2,899
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • OMG Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.77 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • BCU Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing annual fees
    • Pre-approval valid for 3 months

  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    • Redraw available
    Interest rate
    5.74 % p.a.
    Variable
    Comparison rate
    5.79 % p.a.
    Initial monthly repayment
    $2,915
    Go to site
    • No monthly or annual fees
    • Make extra repayments, access to redraw and pay out early without penalty
    • Choose weekly, fortnightly or monthly repayments

  • Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.78 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,927
    Go to site
    • $0 application fee to pay
    • Unlimited additional repayments
    • Apply in as little as 15 minutes

  • Budget Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    • Cashback
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.82 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • IMB Bank has confirmed a rate cut of 0.25% p.a. effective 30 May
    • Get up to $4,000 cashback (T&Cs apply)
    • Split loan available

  • Variable Home Loan 90

    • Owner occupier
    • Principal & Interest
    • 10% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.79 % p.a.
    Variable
    Comparison rate
    5.83 % p.a.
    Initial monthly repayment
    $2,931
    Go to site
    • No monthly or ongoing fees
    • Option to add an offset for 0.10% p.a.

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    5.86 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • ubank has confirmed a rate cut of 0.25% p.a. effective 29 May
    • Easy redraw facility
    • No annual fee to pay

  • Flex Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.84 % p.a.
    Variable
    Comparison rate
    6.08 % p.a.
    Initial monthly repayment
    $2,947
    Go to site
    • ubank has confirmed a rate cut of 0.25% p.a. effective 29 May
    • Free extra repayments
    • Multiple offset accounts available

  • Home Loan with Offset

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.88 % p.a.
    Variable
    Comparison rate
    5.89 % p.a.
    Initial monthly repayment
    $2,959
    Go to site
    • Regional Australia Bank has confirmed a rate cut of 0.25% p.a. effective 4 June
    • No application and monthly account keeping fees
    • Get up to $4,000 cashback (T&Cs apply)

  • Basic Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Redraw available
    Interest rate
    5.88 % p.a.
    Variable
    Comparison rate
    5.91 % p.a.
    Initial monthly repayment
    $2,959
    Go to site
    • P&N Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options

  • Offset Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    5.89 % p.a.
    Variable
    Comparison rate
    5.92 % p.a.
    Initial monthly repayment
    $2,962
    Go to site
    • BCU Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing monthly loan maintenance fees to pay.
    • Pre-approval valid for 3 months

  • Offset Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 40% min deposit
    • Offset available
    • Redraw available
    Interest rate
    6.09 % p.a.
    Variable
    Comparison rate
    6.12 % p.a.
    Initial monthly repayment
    $3,027
    Go to site
    • P&N Bank has confirmed a rate cut of 0.25% p.a. effective 10 June
    • No ongoing monthly loan maintenance fees
    • Weekly, fortnightly, or monthly repayment options
Showing 13 results from 415 home loans. Use the filters to see more

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* 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. You can change the loan amount and term in the input boxes at the top of this table. 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

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

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