We’re making changes to some of our home loans and savings rates.
In light of what’s going on in the world right now, we’ve been reviewing all our rates. We know we’ve taken some time to announce these changes and appreciate your patience. It’s important we strike the right balance between delivering great value to our customers and responding to changing market conditions.
While the RBA announced an emergency cut to the cash rate on March 19, it’s just one part of the cost of funds which influences our pricing. We’re also focused on doing what we can to support customers who have been directly impacted by COVID-19, including offering home loan repayment pauses.
What are the changes?
For Home Loan customers:
- There is no change to our variable rate – the discounted variable rate for owner occupied, principle and interest home loans with balance of $200K or higher, remains very competitive at 2.59% with zero fees.
- A 0.40% reduction to our owner occupied, principle and interest, 3-year fixed home loan rate and a 0.45% reduction to our owner-occupied, principle and interest, 1-year fixed home loan rate. These are both now 2.29% and are some of the lowest rates in the market.
For Savings customers:
- A 0.25% reduction to our base variable interest rate for USave, USaver Reach and USaver SMSF, putting our USave Savings Bonus rate at 1.60%.
- We're also offering a 9-month term deposit rate of 1.70% for personal customers (1.80% with the loyalty bonus).
We’ll continue to offer great rates and help our customers navigate this very unusual period, just as we have for the past 11 years.
What date will the new rates be effective from?
These changes will be effective from Thursday April 9, 2020. This is for both.
What if my home loan settles on or after 9 April 2020?
All customers currently applying for a fixed interest rate UBank home loan, or switching to a fixed rate, will get the rate reduction.
What if I ‘rate locked’ a higher rate on my home loan, but still haven’t settled?
We’ll also be honouring the new rate for customers who rate locked the previous higher interest rates but have not yet settled their loan.
How’s UBank supporting customers during COVID-19?
We’re here to support you during this difficult and challenging time. For more on our response to the pandemic click here.
What support is there for Home Loan customers impacted by COVID-19?
We have options available to support our home loan customers, including a Home Loan Repayment Pause for those customers who have been financially impacted by COVID-19. Click here for more info.