UBank slashes variable rate to 3.34% for new and existing customers

Ubank cuts variable rate content

If you’ve been holding out for the right variable rate home loan, then today is your lucky day. Coming into effect today, UBank has cut variable rates on its UHomeLoan by 0.25%, making it one of the lowest variable rates in the Mozo database. 

With rates now starting from as low as 3.34% (3.34% comparison rate*), Aussie borrowers might be happy to know that both new and existing customers will be able to take advantage of the new offer. 

Never heard of the UBank UHomeLoan? Allow us to introduce you. 

UBank UHomeLoan - Discount Offer
  • Super low 3.34% variable rate (3.34% comparison rate*)

  • No application or service fees

  • Free extra repayments and redraw facility

If you’re after a variable rate loan that's full of flexibility and is budget-friendly, the UBank UHomeLoan could be for you. With the UHomeLoan, there are different rate tiers depending on the amount you’re borrowing, with rates starting from 3.34% (3.34% comparison rate*). You won’t have to pay an application or service fee, plus you’ll be able to make free extra repayments to help trim your interest bill and redraw any of these extra repayments for free! Though there is no offset account, you will be able to fix a portion of your loan, thanks to the split loan feature. Plus, this loan is a 2019 Mozo Experts Choice Award winner in the Low Cost Home Loan category, so it’s got the experts’ seal of approval. 

Read more about the UBank UHomeLoan

*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 the amount and term you entered.

**Initial monthly repayment figures are estimates only, based on the advertised rate, and a loan of $500,000 repaid over 25 years. 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 loans Awards

UBank also made cuts to its investor variable rate UHomeLoan, which now start from a low 3.74% (3.74% comparison rate*). 

UBank UHomeLoan Owner Occupier Variable Rate Changes 

Exactly two weeks ago, UBank announced it was slashing rates on its fixed rate home loan across 1,3 and 5 year terms, bringing its 1 year fixed rate to a jaw dropping 2.99% (4.42% comparison rate*), the lowest fixed rate in our database for that term.  

UBank’s 0.25% rate cut follows the Reserve Bank’s move to cut the official cash rate to a record low 1.25%. But with another RBA rate cut potentially in the works, Mozo’s Banking Expert, Peter Marshall says he wouldn’t be surprised if UBank or other lenders made further reductions to their variable rates. 

“UBank’s new variable rates are incredibly competitive, and with what seems to be a likely second rate cut for the year coming shortly we expect to see those variable rates will drop even further,” he explained. 

Want to find out more about the UBank UHomeLoan? Check out our full review or see how it stacks up against other variable rates in the market by heading over to our home loan comparison tool