Leading fintech UBank has lowered its principal-and-interest loans for new owner-occupiers, effective Wednesday.
The UHomeLoan variable rate for owner-occupiers with a loan-to-value ratio (LVR) up to 80% will decrease by 0.15% per annum to a comparison rate of 2.19% per annum.
Variable rates for those with up to 85% LVR will decrease 0.15% per annum to a comparison rate of 2.34% per annum with no requirement for lender’s mortgage insurance.
The comparison rate is based on a secured loan of $150,000 over a term of 25 years. However, it should be noted that different amounts and terms will result in different comparison rates. Although costs, fees and savings are not included in the comparison rate, they can influence the price of the loan.
In August, UBank also lowered its variable interest rate for new investors paying principal and interest by 0.19% per annum, with LVR up to 80%.