UBank announces 'lowest ever' fixed rate for a limited time only

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on June 01, 2021
UBank announces 'lowest ever' fixed rate for a limited time only

NAB subsidiary UBank has announced an 'end of financial year home loan sale', which includes a new record low rate.

According to UBank, it has today lowered its one-year fixed home loan rate for owner-occupiers paying principal and interest (P&I) to 1.75% p.a (2.31% p.a comparison rate*). 

Available for loan-to-value ratios (LVR) of up to 80%, this new rate is the digital bank's lowest ever one-year fixed rate, and importantly, is only available for a limited time until 30 June 2020. 

This change arrives ahead of today's Reserve Bank (RBA) cash rate decision for June, which is expected to see the cash rate remain unchanged at 0.10%. 

UBank also reduced one-year fixed rates for investors paying P&I as well as interest-only (IO) with deposits of 20% or more:

  • UHomeLoan 1-year fixed rate for investors (P&I): cut by 15 basis points to 1.99% p.a. (comparison rate 2.70% p.a.)
  • UHomeLoan 1-year fixed rate for investors (IO): cut by 0.20% p.a. to 2.09% p.a. (comparison rate 2.71% p.a.)
  • UHomeLoan variable rate for investors (IO): cut by 0.54% p.a. to 2.60% p.a. (comparison rate 2.65% p.a.)

The latter of these rate changes will apply after June 30, unlike the others. 

Since the first of several RBA cash rate changes that first occurred in June 2019, UBank has 'more than halved' its one-year fixed rates for owner-occupiers from more than 3.50% p.a. 

UBank CEO Philippa Watson said it's important customers can still find the right home loan even with record low rates. 

"We believe a really sharp one year fixed rate provides the right mix of certainty and flexibility that people are looking for," Ms Watson said.

“There’s currently a lot of discussion around fixed versus variable rates and which one is best.

"This very low offer gives customers one of the lowest rates in market, giving them more money
back in their pocket and stability after a period of uncertainty."


Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner-occupiers. 

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEESFEE FREE OFFSET

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Variable Owner Occupied, Principal and Interest (Refinance Only)(LVR <75%)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.

Rates correct as of January 25, 2022. View disclaimer.

86 400 cuts, launches new refinancing feature 

Neobank 86 400, which is set to merge with UBank after being purchased by NAB, has today also made various changes to its fixed rate products

86 400 increased the advertised rate on its 'Own Home Loan' by 13 basis points to 2.50% p.a (2.72% p.a comparison rate*) for a five year term. 

This home loan product also saw a 17 basis point decrease for a two year term to 1.98% p.a (2.61% p.a comparison rate*), while investor loans for this period were also cut by 15 basis points. 

These changes have been made on the same day that 86 400 has launched its new 'direct-to-consumer channel'. 

According to 86 400, this lets customers refinance from their smartphone or computer in as little as 15 minutes, with approvals possible within two hours. 

Howitworks.JPG

Here's how this new automatic process works (image via 86 400).

86 400 CEO Robert Bell said the neobank wanted to create a smart approach "for those who prefer to apply direct." 

“While mortgage brokers will continue to be our primary channel, particularly providing expertise to help the customers through more unique and complex situations, launching a direct-to-consumer channel is our next stage of growth as we continue to live out our mission of helping all Australians take control of their money," he said. 

Lending Product Lead Melissa Christy meanwhile said this new streamlined process is a "smarter, simpler, digital alternative". 

"Our fast applications and approvals promise to put more Australians on the financial fast track to property ownership, or a better rate on their existing mortgage.” 

Related: ACCC, APRA approves NAB's purchase of neobank 86 400

New variable loan enters the market 

Digital non-bank and financial services platform WLTH has launched a new home loan product today with a highly competitive rate. 

WLTH has released a variable rate home loan at 1.99% p.a (2.05% p.a comparison rate*), available for larger deposits at a 60% LVR. 

This new product has been released ahead of the expected cash rate hold today, and joins WLTH's other home loan products available for both owner occupiers and investors. 

"We are excited to be able to launch this new product to market and be one of the market leaders in the space," CEO and co-founder Brodie Haupt said. 

"Even with strong growth in the property market over the last few months, the RBA looks set to hold rates for the foreseeable future.

"The RBA has continuously said that they won't be increasing the cash rate until inflation is back within the target range and with no sign of this at the moment, I can't see the rates lifting earlier than expected."

Other recent home loan rate changes: 


Photo by Artem Beliaikin on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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William Jolly joined Savings.com.au as a Financial Journalist in 2018, after spending two years at financial research firm Canstar. In William's articles, you're likely to find complex financial topics and products broken down into everyday language. He is deeply passionate about improving the financial literacy of Australians and providing them with resources on how to save money in their everyday lives.

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