As interest rates across the home loan market continue their downhill slide, UBank has announced a historic move, slashing its one and three year fixed home loan rates down to 3.69% p.a. (4.15% and 4.00% comparison rates, respectively*) - the lowest rate the lender has ever offered.
The reduction in fixed rates comes after the RBA’s decision to drop the official cash rate to a record low 1.75%, prompting many lenders to follow suit with a 0.25% interest rate cut. UBank was among them, reducing its variable rate home loans to 3.74% (3.74% comparison rate*).
“We understand home ownership and know that having certainty around loan repayments allows our customers to plan for the future,” said Lee Hatton, CEO of UBank.
“By reducing our rates time and time again, across all our home loan products we’re giving Australians the chance to ensure they get the best deal and have the opportunity to pay off their home loan faster.”
On top of slashing its one and three year fixed rates to 3.69% (4.15% and 4.00% comparison rates, respectively*), UBank also reduced its five year fixed rate from 4.57% p.a. (4.30% comparison rate*) to 4.27% (4.18% comparison rate*).
With these consistently low rates and no ongoing fees, it’s no wonder UBank has netted no less than three awards in Mozo’s 2016 Experts Choice Awards, across the categories for Best Value Fixed Rate Home Loan, Best Value Fixed Investor Loan and Best Value Variable Rate Home Loan.
These awards assessed 392 home loan products across the Australian market, and only the top 10% of products in each category were named as winners.
“The Mozo Experts Choice Awards are designed to showcase the products currently offering Australians the best value for their money,” said Mozo director Kirsty Lamont. “To win across multiple categories is a big tick for a lender.”
Smaller, primarily online lenders such as UBank have been consistently represented amongst Mozo Experts Choice winners, reflecting their competitive pricing and products.
*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.