UBank announces ‘lowest ever’ fixed rate for a limited time only

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NAB affiliate UBank announced a “year-end mortgage sale,” which includes a new record rate.

According to UBank, it has now lowered its one-year fixed mortgage rate for homeowners paying principal and interest (P&I) to 1.75% pa (comparison rate of 2.31% pa *).

Available for loan-to-value (LVR) ratios of up to 80%, this new rate is the lowest one-year fixed rate ever recorded by digital banking and, most importantly, is only available for a limited time up to. ” as of June 30, 2020.

The change comes ahead of today’s decision on the Reserve Bank’s (RBA) cash rate 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): reduced by 15 basis points to 1.99% pa (comparison rate 2.70% pa)
  • UHomeLoan 1 year fixed rate for investors (IO): reduced from 0.20% pa to 2.09% pa (comparison rate 2.71% pa)
  • UHomeLoan Variable Rate Investors (IO): reduced from 0.54% pa to 2.60% pa (comparison rate 2.65% pa)

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 “over half” its one-year fixed rates for owner-occupiers of over 3.50% pa.

UBank CEO Philippa Watson said it’s important that clients can always find the right home loan, even with record rates.

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

“There is currently a lot of discussion about fixed versus variable rates and which one is better.

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


Buying a home or looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.

Lender

Rate type Gap Redraw Ongoing charges The initial costs LVR Lump sum reimbursement Additional refunds Pre-approval

Variable More details
LIMITED TIME OFFER

Smart Booster real estate loan at variable discount rate – 2 years (LVR
  • Fast turnaround times, can meet a 30 day settlement
  • For purchase and refinancing, minimum deposit of 20%
  • No ongoing or monthly fees, add compensation for 0.10%

Variable More details
100% FULL ACCOUNTNO APPLICATION FEES OR CURRENT FEES

Low rate home loan – Premium (principal and interest) (owner occupied) (LVR
  • No upfront or ongoing fees
  • 100% clearing account
  • Additional refunds + reprint services

Fixed More details
LOCKING RATES FOR 90 DAYS

1-year fixed real estate loan (capital and interest) (LVR
  • Simple digital application process
  • Market-leading app to help you pay off your loan sooner
  • No ongoing charges

Variable More details
REFINANCING IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Busy, Principal and Interest (Refinancing Only)

  • Refinancing only. Fast online application
  • No Nano fees. 100% free sub-account clearing
  • Mobile app, Visa debit card and instant payments

86,400 cuts, launches new refinancing feature

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

86,400 increased the announced rate of its “Clean Housing Loan” by 13 basis points to 2.50% per year (comparison rate of 2.72% per year *) for a period of five years.

This mortgage product also saw a drop of 17 basis points decrease for two years at 1.98% pa (comparison rate of 2.61% pa *), while investor loans for this period were also reduced by 15 basis points.

These changes were made on the same day that 86,400 launched its new “direct-to-consumer channel”.

According to 86,400, this allows customers to refinance from their smartphones or computers in just 15 minutes, with approvals possible within two hours.

Howitworks.JPG

Here is 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 directly.”

“As mortgage brokers will continue to be our primary channel, particularly in providing expertise to assist clients in more unique and complex situations, launching a direct-to-consumer channel is our next growth step. as we continue to live out our mission to help all Australians take control of their money, “he said.

Loan Product Manager Melissa Christy said the new, streamlined process is a “smarter, simpler digital alternative.”

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

Related: ACCC, APRA Approve NAB Purchase of Neobank 86,400

A new variable loan enters the market

The digital non-banking and financial services platform WLTH today launched a new mortgage product at a very competitive rate.

WLTH has launched a variable rate home loan at 1.99% pa (comparison rate 2.05% pa *), available for larger deposits at an LVR of 60%.

This new product was launched ahead of maintaining the expected cash rate today and joins other WLTH mortgage products available to homeowners and investors.

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

“Even with strong growth in the real estate market in recent months, the RBA appears poised to hold rates down for the foreseeable future.

“The RBA has continually said that they will not increase the cash rate until inflation has returned to the target range and with no sign of it yet, I can’t see rates going up sooner. provided that.”

Other recent changes in mortgage rates:


Photo by Artem Beliaikin on Unsplash

The entire market was not taken into account in the selection of the above products. On the contrary, a small part of the market has been envisaged. Products from some vendors may not be available in all states. To be considered, the product and the price must be clearly published on the website of the supplier of the product. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, the Savings Media Group is associated with the Firstmac Group. To learn more about how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.


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