UBank has rolled out a limited-time offer sub-2% variable home loan rate for owner-occupiers, its lowest ever advertised variable rate in its history.

The limited-time rate of 1.99% p.a. (1.99% p.a. comparison rate) will be available under the UHomeLoan product for principal and interest payments and a loan-to-value ratio of up to 80%.

The rate will be available for new UHomeLoan applications received until 31 January 2022 that settle by 1 May 2022.

UBank CEO Philippa Watson said with this low variable rate, borrowers would be able to save hundreds of dollars a month on their repayments, especially at a time where serviceability was at its lowest since the emergence from the GFC in 2008.

“With new data showing the average family now spends 36.2% of their income on loan repayments, it’s more important than ever for customers to review their current rate and check how much they could be saving,” she said.

UBank’s new rate was significantly lower than the market average of 3.93% per annum.

Average customer on the 1.99% rate who borrowed $450,000 would shave $469 per month off their monthly repayment, which means a saving of $168,915 over 30 years.

Photo by Andre Taissin on Unsplash.