UBank cuts mortgage rates to 6.99 per cent

Just two weeks after launching its first home loan, NAB’s online bank UBank has announced a rate cut. UHomeLoan was launched on February 20 with a variable rate of 7.05 per cent. Yesterday, in the latest skirmish in the mortgage war, the rate was cut to 6.99 per cent.

UBank does not charge an application fee, account-keeping, administration or an early exit fee. Customers who maintain the loan for three years receive a 10 basis point loyalty discount, which is then maintained for the life of the loan. The loan is only available to customers refinancing an existing loan and the maximum loan-to-valuation ratio is 80 per cent.

Last Friday, Commonwealth Bank launched a mortgage with no fees and a variable rate of 7.24 per cent. Commonwealth’s big selling point is that customers can use branches, or any other bank channel, to apply for the loan. UHomeLoan is an online-only product. Commonwealth is also offering a fee-free transaction account and a fee-free credit card with the loan.

Source: Banking Day