According to NCA NewsWire, Australian mortgage interest rates have hit a record low. UBank, an online bank under the National Bank (NAB), provides owner-occupiers with a three-year fixed interest rate as low as 1.75% of principal and interest. This is currently the lowest interest rate on the Australian mortgage market. However, this preferential interest rate has a time limit, and the deadline for application is February 26.
The Reserve Bank of Australia has created a low interest rate environment in response to the pandemic, allowing banks to borrow funds at a cash rate of 0.1%. These cheap funds can be passed on to consumers in the form of lower loan interest rates. UBank is a digital bank under NAB that only undertakes network business, mainly to attract more and more refinancing customers and new customers seeking better interest rates. UBank CEO Philippa Watson said: “Current interest rates are at the lowest level in history.”
Sally Tindall, head of research at RateCity, said UBank has set deadlines for the best-looking transactions on the market, with the goal of allowing customers to act quickly. Ms. Tindall pointed out that fixed interest rates are generally not as flexible as floating interest rates, and homeowners should carefully consider before choosing to lock in interest rates and give up flexibility.
https://mozo.com.au/home-loans/articles/ubank-cuts-home-loan-fixed-rates-to-record-low-of-1-75