UBank announce Australia's lowest fixed rate home loan

UBank, a subsidiary of NAB, has announced the new lowest fixed rate in Australia – 1.75 per cent for three years.
UBank announce Australia's lowest fixed rate home loan
Joel Robinson January 21, 2021

UBank, a subsidiary of NAB, has announced the new lowest fixed rate in Australia – 1.75 per cent for three years.

But customers will have to be quick, with the rate set to expire in a little over a month.

The three-year fixed rate is 0.13 per cent below the next lowest fixed rate and 1.34 per cent lower than the average existing owner-occupier rate of 3.09 per cent (RBA data).

UBank has also cut its other fixed rates by up to 0.35 per cent for new customers.

There are now 53 lenders offering at least one fixed or variable rate under 2 per cent on over 120 different home loans, according to RateCity.com.au data.

RateCity.com.au research director Sally Tindall said while the RBA was set to keep rates on hold, competition between lenders was still driving home loan rates down.

“Lenders have been offering home loan rates under 2 per cent since June last year, yet thousands of existing mortgage holders seem content with the idea of paying a rate starting with a ‘3’,” she said.

UBank announce Australia's lowest fixed rate home loan
Source: RateCity.com.au

“UBank’s decision to offer a market-leading rate for just over a month is designed to get people to act.

“Putting an expiry date on this deal could help combat complacency among mortgage holders.

“Mortgage holders suffering from inertia are likely to be getting fleeced,” she said.

“Fixed rates are typically less flexible than variable ones, so if you want access to an offset account and unlimited repayments, you might look at splitting your loan or consider a variable rate loan,” she said.

Joel Robinson

Joel Robinson is the Editor in Chief at Urban.com.au, managing Urban's editorial team and creating the largest news cycle for the off the plan property market in the country. Joel has been writing about residential real estate for nearly a decade, following a degree in Business Management with a major in Journalism at Leeds Beckett University in England. He specializes in off the plan apartments, and has a particular interest in the development application process for new projects.

Editor's Picks