For the first time since its launch in 2008, UBank, a digitally driven subsidiary of National Australia Bank has announced an interest rate reduction for its fixed rate home loan offerings.
The bank recently announced that its one and three-year fixed rate loans will now carry an interest rate of just 3.99%, representing a decrease of 0.38% for three-year fixed rate loans and 0.48% for one-year fixed rate loans.
“The average rate for a three year fixed home loan across other financial institutions is about 4.32%,” UBank chief executive officer Lee Hatton said.
“When comparing the average rate to UBank’s simplified 3.99% fixed rate, a home owner with a $350,000 loan, could save themselves about $3500 in interest over the three years; that’s more than $1000 each year,” Hatton said.
Hatton said the bank had decided to carry out the rate reduction had been driven by a desire to remain competitive and take advantage of borrowers who uses the early part of the year as a time to re-evaluate their financial position.
“Our rates have always been extremely competitive within both the Owner Occupied and Investor market. Indeed, where we lead in repricing fixed rates, we often see our competitors follow suit. But what really drove this decision was to offer one of the lowest rates around for people looking to refinance at the start of the year, as they review their goals and make healthy changes to their finances,” she said.
“UBank’s aim is to become Australia’s most referred brand. Simplified pricing and a hugely competitive rate will not only make banking easier for Australians but it could also save them thousands of dollars each year .”
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