UBank cuts fixed rates for end of financial year home loan sale

Just in time for the end of the financial year, UBank has slashed fixed interest rates on selected home loan deals by up to 24 basis points, for borrowers who apply before 30 June 2021.

This deal has brought the one-year fixed home loan rate on an LVR up to 80% for owner-occupiers paying principal and interest down to 1.75% p.a. (comparison rate 2.31% p.a.) – UBank’s lowest ever one-year fixed home loan rate.

One-year fixed rates for investors are also being temporarily slashed as part of the sale. Additionally, UBank’s variable rate for investors paying interest only is set to be reduced by 54 basis points, with this reduction to remain in market after 30 June 2021.

* Fixed rate offers will apply only if an application is made between Tuesday 1st June and Wednesday 30th June 2021 on 80% LVR.

According to a recent RateCity survey, 35% of homeowners have opted to fix their interest rate in the past year, and another 21% are considering it. This is hardly surprising, considering the record-low fixed rates seen in the market over the past year, thanks to a combination of cash rate cuts and extra funding support for banks from the Reserve Bank of Australia (RBA).

That said, with the RBA’s term funding facility set to expire at the end of June 2021 and the cash rate forecast to increase some time after 2024, several lenders have started increasing their longer-term four and five year fixed rate offers.   

Before you apply for a fixed rate home loan or any other mortgage deal, it’s important to compare home loans and consider which offers may best suit your personal and financial needs.

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