NAB-owned digital lender UBank has cut interest rates on two fixed-rate home loans only two weeks after slashing rates on some variable-rate home loans.
On Friday a couple of UBank rate changes took effect, including:
- UHomeLoan Fixed P&I 3 Years: Cut by 10 basis points to 1.85% p.a. (2.24% p.a. comparison rate*)
- UHomeLoan Fixed P&I 3 Years 85%: Cut by 10 basis points to 2.05% p.a. (2.40% p.a. comparison rate*)
This follows UBank's cuts to variable investor rates in late August.
"LMI can add tens of thousands to a borrower's loan. Here at UBank, we believe it's an extra expense our customers can do without," UBank CEO Philippa Watson told Savings.com.au.
Depending on the size of the home loan, paying a slightly higher interest rate could work out to be cheaper than paying insurance, which is typically anywhere from 1-4% of the purchase price depending on insurance provider.
Buyers could also factor in capital gains and time taken to save for a deposit, given property prices have increased by more than 15% in the year to date.
Domain's 2021 First Home Buyers report shows an increase in the time taken for first home buyers to save for a 20% deposit compared to a year ago.
In Sydney for example, it now takes first home buyers six months longer to save for a 'starter home' compared to a year ago, now sitting at seven years and one month.
Bank of Us introduces new low offer for Tasmanian residents
Tasmanian-based Bank of Us has introduced a new 'Special Offer' discounted rate on its 'FlexiDiscount' home loan, fixed for one year with 80% LVR.
The rate is 1.79% p.a. (2.45% p.a. comparison rates*), and is offered to Tasmanian residents only.
This represents one of the lowest home loan rates ever, with Bank of Us having form as a market leader.
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.
Photo by Josh Spires on Unsplash