Digital bank UBank has unveiled its lowest fixed rate offering as part of its year-end home loan sale.
The bank lowered its one-year fixed rate for homeowner home loans paying principal and interest to 1.75%. This reduced rate, which is the lowest one-year fixed rate on record by UBank, will be available for claims submitted until June 30.
âWhile rates are at record highs, it’s important that customers can still find the right home loan for their needs today and tomorrow. We believe that a really high one-year fixed rate provides the right mix of certainty and flexibility that people are looking for, âsaid Philippa Watson, CEO of UBank.
UBank has cut its one-year fixed interest rate for homeowners by more than half, from 3.59% in 2019 to 1.75%. This lower fixed rate has the potential to save customers $ 731 per month in interest payments or $ 8,781 over the one-year fixed term, on a loan of $ 480,000 over 30 years.
âThere is currently a lot of talk about fixed versus variable rates and which one is better. This very low offer gives customers one of the lowest rates in the market, allowing them to get more money back out of their pockets and stay stable after a period of uncertainty, âWatson said.