UBank removes IMT for deposits by 15%, Athena cuts variable rates

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UBank is making it easier to enter the real estate market with smaller deposits while Athena has reduced variable mortgage rates.

Starting today, NAB’s online lender and affiliate, UBank, will allow homeowners to buy a home with a 15% down payment without having to shell out for Lender’s Mortgage Insurance (LMI).

This is down from the standard LMI threshold of 20%.

According to UBank, homeowners could save $ 5,000 in insurance costs on an average loan of $ 480,000 by saving for a deposit of $ 72,000 (15%) instead of $ 96,000 (20%).


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.

UBank CEO Philippa Watson said the major change would mean Australians could enter the market seven months earlier than if they had to pay for IMT up front.

“We are passionate about helping Australians get home, but we know that saving for a home deposit takes an average of 4.6 years, reaching over eight years for residents of Sydney,” said Mrs. Watson.

“By only asking for a 15% deposit and waiving the need for LMI, UBank can help cut the process by almost seven months. “

Related: Gateway Bank Will Allow Customers To Make Separate Monthly IMT Repayments

UBank loans available with this offer include a variable rate of 2.49% pa (2.49% pa comparison rate *), or a three-year fixed rate of 2.05% pa (2.41% pa rate of comparison *) for homeowners making principal and interest (P&I) refunds.

Ms Watson said LMI, which can run into the tens of thousands, is an additional expense that borrowers can do without.

“We know the appetite for homeownership continues to grow, with 56% of Australians who don’t yet own a home excited about the prospect of owning one, up 13% since July of 2006. last year, “she said.

“But saving for a deposit can make the great Australian dream out of reach.

“LMI can add tens of thousands of dollars to a borrower’s loan. At UBank, we believe this is an added expense that our customers can do without. “

Athena cuts variable rates by up to 20 basis points

Online lender Athena has reduced interest rates on a number of its homeowner and investor home loans.

Lower Athena rates for owner-occupiers

  • The P&I Celebrate Variable Home Loan for borrowers with 60% LVR has been reduced by 20 basis points to 1.99% pa (1.99% pa of comparison rate *).
  • The Evaporate P&I Variable Home Loan for borrowers with an LVR of 60-70% has been reduced by 15 basis points to a new low of 2.09% per annum (comparison rate of 2.02% per annum * ).
  • The Liberate P&I variable home loan for borrowers with 70-80% LVR has been reduced by 10 basis points to 2.19% pa (comparison rate of 2.08% pa *).

Athena’s rate cut for investors

  • The P&I Celebrate Variable Home Loan for borrowers with 60% LVR has been reduced by 15 basis points to 2.39% per annum (comparison rate of 2.39% per annum *).
  • The Evaporate P&I Variable Home Loan for borrowers with 60-70% LVR has been reduced by 10 basis points to 2.49% pa (comparison rate of 2.43% pa ​​*).
  • The Liberate P&I variable home loan for borrowers with 70-80% LVR has been reduced by 5 basis points to 2.59% pa (comparison rate of 2.48% pa *).
  • Investors making interest-only repayments (IO) with 60% LVR received a 15 basis point cut to 2.69% per annum (comparison rate of 2.50% per annum *).

The government announces new housing purchase measures

The changes come after the federal government announced a series of new measures to help Australians buy their first homes earlier under the upcoming 2021-22 budget, which will be unveiled on Tuesday.

Among the measures are the Family Housing Guarantee, which will allow 10,000 single parents each year for four years to buy housing with a 2% down payment from July.

The First Home Loan Deposit Scheme, now called the “New Home Guarantee” will be extended for a second year, offering 10,000 additional places in 2021-2022.

Under this program, first-time home buyers can buy a newly built home or build a new home with a 5% down payment.

The maximum amount of voluntary contributions that can be released under the First Home Super Saver Scheme will be increased from $ 30,000 to $ 50,000.


Photo by DocuSign on Unsplash

The entire market was not taken into account in the selection of the above products. Instead, a smaller portion of the market has been envisioned, which includes the retail products of at least the Big Four Banks, the Top 10 Client-Owned Institutions, and Australia’s largest non-banks:

Products from some vendors may not be available in all states. To be taken into account, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure, Savings.com.au, Performance Drive, and Loans.com.au are part of the Firstmac group of companies. To learn more about how Savings.com.au handles potential conflicts of interest, as well as how we are paid, please click on the links on the website.

*Comparison rate is based on a loan of $ 150,000 over 25 years. Please note that the comparison rate only applies to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as draw charges and cost savings such as fee waivers are not included in the comparison rate but can influence the cost of the loan.


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