UBank's UHomeLoan now 6.59%pa Making it easier for home owners to refinance

Monday, 23 May 2011

UBank has today announced its standard variable rate for UHomeLoan now is 6.79%pa.

In addition, UBank is offering a 0.2%pa Loyalty Discount, for the life of the loan, to all existing customers and for any online UHomeLoan applications received by 30 June 2011.

The change puts the ongoing rate to 6.59%pa for UHomeLoan customers, up to 1.0%pa lower than other, similar products on the market, which could save the average home owner $250 each month*.

Alex Twigg, General Manager of UBank: "Home owners can take control of their finances and make big savings, by switching to a more competitive home loan.

"UBank is offering a quick and easy, low-rate alternative – and encouraging home owners to have a good, hard look at their existing loan," he said.

After interest rates rose in November last year, the number of people looking to refinance jumped 12 per cent to almost one in two home owners, according to UBank research^.

The number-one reason for wanting to refinance was either to get a better deal on interest rates (36 per cent) or fees (30 per cent).

Fifty-eight per cent of respondents said a saving of up to 1.0%pa would trigger them to switch. Alex says getting a better deal on interest rates and fees doesn't have to be in the too-hard basket.

"Within half an hour, customers can calculate the potential saving on their mortgage payments and lodge an application online at ubank.com.au.

"It costs nothing to apply for a variable UHomeLoan and customers won't be stung with any hidden account keeping, ad hoc, administration or early exit fees," he said.

Customers can also get assistance from UBank's Australian-based 24/7 call centre, on 13 30 80 or via Skype (account: ubank.com.au).

Media contact:

Jessica Forrest
UBank (NAB Corporate Affairs)
0457 536 958 or jessica.a.forrest@nab.com.au

Notes to editor:

UHomeLoan customers are able to borrow up to 80 per cent of the value of their property. UHomeLoan is only available to customers refinancing an existing mortgage. UHomeLoan was developed with Advantedge, also part of the NAB Group. Also, please note there are usually Government charges payable in relation to a home loan such as stamp duty and registration fees. The comparison rate is based on a secured loan of $150,000 over the term of 25 years. Warning: different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers are not included in the comparison rate, but may influence the cost of the loan.

*Savings calculation is based on the assumption of a $300,000 variable rate loan, paying interest only. The calculation does not include any costs associated with refinancing, such as exit fees charged by the existing lender or any other fees or charges.

^Research conducted by Core Data during October & November 2010 and then March 2011. Data was collected from a representative grouping of the population of those who currently have a mortgage, with a sample of 661 respondents.

About UBank:

UBank was launched in October 2008 and is developed and backed by the financial strength and global capabilities of NAB. Although a part of NAB, the ideas, people, philosophy and brand are uniquely UBank. UBank aims to simplify banking – being entirely online or over the phone means there are no fees and no queues. In addition to UHomeLoan, UBank currently offers the USaver high-interest, online savings account and a range of Term Deposits (which can be used by Self Managed Super Funds), with new products under development.