UBank launches a limited-term fixed-rate mortgage offer

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NAB-owned digital bank UBank has introduced what may be Australia’s lowest advertised mortgage interest rate.

For a limited time, UBank offers a three-year fixed rate home loan of 1.75% per annum, with a comparison rate of 2.22% per annum * for owner-occupiers paying principal and interest.

Interested borrowers should apply by February 26 and pay within 90 days.

The maximum loan-to-value ratio (LVR) on the loan is 80% (i.e. 20% deposit), which is different among lenders with home loans below 2% – most Lower rates have a maximum LVR of 60-70%.

The new announced “UHomeLoan” rate represents a reduction of 20 basis points from the three-year fixed rate, with the mortgage previously charging 1.95% pa

The NAB-owned lender now owns the right to what could be the lowest-rate home loan in the market, according to the Savings.com.au market research.

You can see how this rate compares to those offered by other lenders below, noting that the latest drop may not have materialized yet.

The table below shows home loans with some of the lowest interest rates on the market.

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

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
Variable More details
EASY ONLINE REQUEST
Fixed More details

2-year fixed rate mortgage (LVR

Basic criteria: a loan amount of $ 400,000, variable, fixed, principal and interest (P&I) mortgage loans with an LVR (loan-to-value) ratio of at least 80%. However, the table “Compare mortgages” allows calculations to be performed on variables selected and entered by the user. All products will list the LVR with the product and price which is clearly posted on the product supplier’s website. Monthly repayments, once the basic criteria are changed by the user, will be based on the advertised rates of the selected products and determined by the loan amount, type of repayment, loan term and LVR entered by the user. /you. * The comparison rate is based on a loan of $ 150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees, or other loan amounts may result in a different comparison rate. Prices correct as of December 28, 2021. See disclaimer.

According to Philippa Watson, CEO of UBank, the online lender more than halved its interest rate on its three-year owner-occupied loan in just over 18 months.

“The rates are at their lowest. If you have toyed with the idea of ​​repairing all or part of your home loan, then I encourage you to explore the most competitive rates because you could save thousands of dollars, ”she said.

As of May 2019, the advertised rate for this loan was 3.59% per annum, which UBank said could save customers up to $ 465 per month in interest payments on a loan of 480,000. $.

UBank’s rate change comes amid a pickup in activity over the past week as some lenders stalled their first rate cuts of the year.

For example, People’s choice reduced its three-year lump sum loan for homeowners by 10 basis points.

It now stands at 1.99% pa (3.64% pa comparison rate *), for those who pay P&I.

Various other non-lump sum loans to investors and homeowners have been reduced by up to 15 basis points.

Somewhere else, Newcastle Permanent cut and raised a few home loans.

Various five-year Premium Plus Package mortgage loans have been increased by up to 20 basis points.

However, some four-year fixed rate loans have been reduced by up to 19 basis points.

For example, the 4 year fixed loan for investors is now 2.59% pa (comparison rate 3.96% pa *).

This is a “special offer” for borrowers with up to 80% LVR.

Newcastle Permanent is remarkable in that borrowers can fix their home loan for up to 10 years.


photo by Lennon cheng to 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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