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UBank Home Loan Interest Rate 2.34% Variable Rate / 1.95% 3-Year Fixed Rate

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Effective 29 November, variable rates for owner occupier and investor (principal & interest and interest only) will reduce by 0.15% p.a. New owner occupier principal & interest variable rate customers will receive 2.34% p.a. (comparison rate 2.34% p.a.).

Effective 13 November, UHomeLoan 3-year Fixed Rate will reduce by 0.19% p.a. to 1.95% p.a. (comparison rate 2.36% p.a.*) for Owner Occupier (principal and interest) and the Rate Lock Fee of $395 won’t apply for all new fixed rate loans that settle on or before 31 March 2021.

Here’s some info and key dates for customers with applications already in progress:

What if my variable interest home loan hasn’t settled yet?
All new customers currently applying for a variable interest rate UBank home loan will get the new reduced variable rate from 29 November 2020.

What if my home loan settles on or after 29 November 2020?
If your loan settles on or after 29 November 2020, you’ll get the new reduced variable interest rate from your settlement date.

What if my home loan settles before 29 November 2020?
If your loan settles before 29 November 2020, the current variable interest rate for your home loan will apply up until 29 November 2020. From 29 November 2020, the new reduced variable rate will apply.

Here’s some info and key dates for existing home loan customers:

When will the variable home loan interest rate change happen?
The 0.15% p.a. rate reduction will apply from 29 November 2020.

Will my repayments reduce automatically?
Depending on how your repayments have been set up, they may reduce when the new lower interest rate takes effect. If there’s a change to your repayment, we’ll send you a letter to let you know what your new repayment will be. Keep a look out for a letter that will be sent to you, which will outline more information on your new repayment details.

I am already on a fixed interest rate, will I receive the discount?
Once your fixed interest period ends, your home loan will switch to the variable interest rate applicable at that time.

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closed Comments

  • +1

    I would say UBank is probably one of the most consistent long term with passing on rate cuts and staying competitive.
    Not always the absolute leader lately, but they have been either at the front of near the front for a lot longer than some of the other alternatives i've seen pop up.

  • TicToc has the variable (comparison) rate 2.2% now. In addition, TicToc has an option to add an offset account for $10 per month, whereas UBank doesn't. Is there any reason to choose UBank with 2.34%?

    • YMMV.
      loan types are bad, and dont like adelaide and bendigo bank.
      might get ban with tiktok app for security. ;)

    • How much they chsrge if you want to switch to another lender?

      Is tictoc applicable for first home buyer?

  • Edit: wrong thread

  • UBANK variable loans don't have offset?

    • +1

      They don't come with offset account. However, their redraw usually deposits funds to your nominated account within same business day.

      • -3

        Ahk. No point having variable loan with no offset. Literally no benefit. May aswell fix it to save on 0.25 to 0.40%

        • +2

          The additional amount you put in as redraw will help to reduce the effective interest amount.

          • -1

            @OhNoUShiz: Correct but there are many disadvantages having a redraw account, one main factor being you have less control of your own money

            • @yellowfever: Yeah. Correct. it’s not like offset that you can use as a daily transaction account. It’s more of a lump sum you can put in there rather than in saving account with near zero interest. It’s can be good for those who needs more discipline in savings to pay off the mortgage earlier. I tend to recall offset account will usually has higher interest rate too. Maybe I am wrong.

    • Correct. But an over rated feature in my view. I have no need for offset. Redraw facility is all I need.

  • Hi, i am just wondering is it normal for ubank to engage MSA national and charge a fee of $2200ish compare to other lenders? Cheers

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