UBank announces lowest fixed rate ever for a limited time only

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

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

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 for 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 spot rate changes that first occurred in June 2019, UBank has “ more than halved ” its one-year fixed rates for homeowners over 3 years old, 50% per year

UBank CEO Philippa Watson said it’s important that customers 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,” said Ms. Watson.

“There 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 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.

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%. If the listed products have an LVR

86,400 cuts, launches new refinancing feature

Neobank 86,400, which will 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 a two-year term 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 came on the same day that 86,400 launched its new “direct-to-consumer channel”.

According to 86,400, this allows clients to apply for a new loan or refinance from their smartphone or computer in as little as 15 minutes, with approvals possible within two hours.


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.”

“While mortgage brokers will continue to be our primary channel, particularly 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’s Purchase of Neobank 86400

A new variable loan enters the market

The digital non-banking and financial services platform WLTH today launched a new mortgage loan 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 before the expected cash rate is maintained 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 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 cannot 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. Instead, a smaller part 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 considered, the product and the price must be clearly published on the website of the supplier of the product.

In the interest of full disclosure,, Performance Drive, and are part of the Firstmac group of companies. To learn more about how 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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