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.

UBank's feature on its 85% loan-to-value ratio (LVR) home loan is that borrowers do not have to pay lenders mortgage insurance (LMI).

"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.  

In June 2020, Bank of Us became the first in Savings.com.au's market research to offer a home loan rate under 2%.

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.

Rates
Features
Fees
Other
Lender
VariableMore details
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset
4.6 Star Customer RatingsIncludes Nov RBA Rate Increase

loans.com.au – Variable Home Loan (LVR < 90%)

  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset
More details
VariableMore details
Refinance OnlyApply In Minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Refinance OnlyApply In Minutes

Unloan – Variable Rate Home Loan – Refinance Only

  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
More details
VariableMore details
  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)

Up – Up Home Variable (Principal & Interest) (LVR ≤ 90)

  • Up is 100% owned by Bendigo Bank.
  • Up to 50 offset accounts
  • New joiners get $10 by signing up to the app using code UPHOMESAVINGS. (T&Cs apply)
More details
  • Low rates for purchase and refinancing
  • Simple online application process
  • No fees, unlimited redraws, 0.10% offset

More details
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of November 30, 2023. View disclaimer.

Photo by Josh Spires on Unsplash

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