Two banks slash interest rates, despite widespread rises

by Mike Wood03 Sep 2021

Despite the current trend of lenders towards raising interest rates, two lenders have decided to slash their rates in a play for the key refinancing market.

UBank, a leading fintech, has taken 0.1 off its three-year fixed rate, with owner occupiers with lower than 80% loan to value ratio (LVR) now paying as little as 1.85%. Those on 85% LVR will also gain access to a slightly higher rate of 2.05%.

UBank, a subsidiary of NAB and joined with 86 400, has also lowered investor rates by 0.19% p.a.

“We regularly review our home loan rates to ensure we’re offering great value to our customers. Today we’re pleased to be reducing some of our already sharp fixed rates, to market-leading lows,” said Philippa Watson, CEO of UBank.

Bank of Us, one of the biggest banks in Tasmania, will offer its customers 1.79% on a one-year fixed rate home loan, with CEO Paul Ranson describing the move as a bid for the newly-expanded first home buyer market segment on the island.

“We’re committed to supporting Tasmanians now just as we have for the past 151 years,” he said.

“We ourselves are Tasmanian, so we understand just how much of a positive impact this low interest rate could have on those in our community who are waiting for that opportunity to take the leap into home ownership.”

“With this in mind, we’ve gone ahead and reduced our FlexiDiscount Home Loan 1 year fixed rate for new lending up to 80% property value to a competitive 1.79%p.a. with a comparison rate of just 2.45%p.a.”

“We are fully committed to offering the benefits that can only come from choosing a 100 per cent Tasmanian owned bank - local and personal customer service and competitive banking products and services – that have been designed by Tasmanians for Tasmanians.”


READ MORE: Refinancers are edging out first home buyers, say ABS