Same rate as the Greater Bank deal but with less fees, lower comparison rate and much lower ongoing variable rate if you decide to stick with them after the 1yr fixed period finishes.
Key points:
- Owner occupiers only
- 20% min deposit
- $395 rate lock fee
- No ongoing fees
The comparison rate is based on a secured loan of $150,000 over the term of 25 years. For those with larger mortgages the effective rate will be lower.
UBank's current variable rate is 3.59%
Referrer and referee each receive $20 after referee makes 5 settled card purchases within 30 days.
I hope this doesn't mean they'll lower the Ubank Saver interest rates as well…
of course they will. Banks ain't charities.
Never said they were. I said I hope :)
I don't know why you need to hope for something like that
I have hope every time I buy a lotto ticket too (:
or with RBA dropping rates once, maybe twice in the period of your FI mortgage, look at Reduce Home Loans - 3.09% (3.09% CR) variable.
I had a look at the reduce home loan. They charge more than $1000 for set up and all other third party fees.
lol not sure how they get that CR quoted above then.
It's one off payment. But still. Not worth it.
Geez that's a good rate…
Whilst the headline rate of 2.99% is appealing, I don't think it is worth. As others have said there is a strong chance rates will continue to decrease.
There are two other things to consider
1. There are fixed setup fees associated with fixed rates and
2. The variable rate your loan will default to after the fixed rate period is often quite high.
If you think about it, a fixed rate transfers the risk to the bank. To compensate them for that you will often end up paying more.
Agreed. The only time I think its worth the risk of locking in a rate is if its on the rise and if its heading upward fast. A few decades ago my parents locked theirs in at 17%, after that it continued to increase to 22%.
For a split second….. I thought (hoped) that was CashRewards of 4.09%…
Bad bank, average rate, NOT customer owned.
I don't see the benefit in going fixed for 1 year at 4.09%. The variable rate won't get that high in the next 2 years.
It's not 4.09% unless you have a $150k loan and don't refinance over the course of 25 years. That is how "comparison rates" are calculated. In comparison, if you borrowed $500k the effective rate is 3.069% (2.99% + $395). There is very little chance of the variable rate getting that low in the next 12 months.
Are all comparison rates based on the same figures? I believe yes, so you can compare easily.
So if my variable comparison rate is 3.6 isn't it better?
Comparison rates are always based on a secured loan of $150,000 over the term of 25 years. That is almost pointless though when looking at this loan because most people will borrow more than $150k and the whole point of a 1yr fixed interest loan is that you would refinance after 1 year rather than leaving it at the default variable rate for the next 24 years.
About to drop on the 28th by 0.25%. Variable rate also has unlimited redraw if that's your thing.