- Ubank offers competitive home loan interest rates
- Among the online bank's notable features are its no LMI policy and cutting edge technology
- Home loan applicants can track the progress of their applications via a unique App Tracker feature
NAB-owned ubank launched in 2008, marketing itself as Australia's first homegrown digital bank and setting out to establish itself in the "self-directed" customer space.
Ubank steadily grew its customer base in both its deposits and lending segments before merging with neobank 86 400 in 2021. Since that time, ubank has streamlined its operations to two product lines: home lending and everyday banking.
See also: Guide to ubank savings account
It has heavily invested in technology and continues to roll out features and functionality targeted at younger Australians who prefer to do their banking online.
Among home lenders, ubank is arguably best known for its policy of not charging lenders mortgage insurance (LMI) to owner occupier borrowers with a deposit or equity as low as 10%, but more on that soon.
Compare ubank home loan rates
Check out ubank's current home loan offerings in the table below.
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.09% p.a. | 6.11% p.a. | $3,027 | Principal & Interest | Variable | $0 | $250 | 60% | |||||||||||||
6.09% p.a. | 6.33% p.a. | $3,027 | Principal & Interest | Variable | $250 | $250 | 70% | |||||||||||||
6.14% p.a. | 6.16% p.a. | $3,043 | Principal & Interest | Variable | $0 | $250 | 80% | |||||||||||||
6.19% p.a. | 6.21% p.a. | $3,059 | Principal & Interest | Variable | $0 | $250 | 60% | |||||||||||||
6.54% p.a. | 6.42% p.a. | $3,174 | Principal & Interest | Fixed | $250 | $250 | 60% | |||||||||||||
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure | ||||||||||
5.89% p.a. | 5.80% p.a. | $2,962 | Principal & Interest | Variable | $0 | $0 | 80% |
| Promoted | Disclosure | ||||||||||
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Variable | $0 | $0 | 60% |
What home loans does ubank offer?
Ubank's home loans fall under three banners:
Neat variable
Neat variable home loans are ubank's basic home loan product, featuring:
- no annual fee
- fee-free redraw facility
Flex variable
Flex variable loans come with an offset and feature:
- 100% offset across multiple ubank Spend, Bills, and Save accounts
- unlimited and free additional repayments
- split loan ability with a Flex fixed home loan (below)
- annual fee of $250
Flex fixed
Flex fixed home loans allow:
- fixed periods of one to five years
- additional $20,000 in payments during fixed term at no charge
- free redraw of up to $20,000 in additional funds held within the loan
- annual fee of $250
ubank's no-LMI policy for lower deposit loans
As mentioned, unlike the vast majority of lenders, ubank doesn't levy lenders mortgage insurance (LMI) on:
- owner occupier and investor homebuyers making principal and interest (P&I) loan repayments with a deposit as low as 10%
- owner occupier refinancers making P&I repayments with equity as low as 15%
See also : Savings.com.au Home Equity Calculator
What is LMI?
LMI, a one-off insurance policy to cover lenders, is widely charged on loans with loan-to-value ratios (LVR) of 80% or more - or less than 20% deposit or equity. The insurance is calculated on the size of the loan and perceived risk to the lender. It can add tens of thousands of dollars to the cost of taking out a home loan.
See also : Lenders Mortgage Insurance calculator
Ubank waives LMI on its loans as part of its mission to help its target market of young Australians get into the property market sooner.
Ubank on its no LMI policy
"It's very much directed at those Gen Z and Millennial customers who're looking to get on the property ladder.
They have good jobs. They have good salaries coming in but they may not have the savings yet to get a full 20% deposit.
What this products allows you to do is to come in with a 15% deposit, and not have to pay lenders mortgage insurance.
The interest rate may be a little higher but it allows young people to get into the market sooner and then renegotiate to a lower interest rate once their equity in their property has risen above the 20% benchmark."
Ubank home loan tech
As a bank targetting young people, it's no surprise ubank has pretty impressive tech.
Ubank has won Australian Mortgage Awards' 'Fintech Lender of the Year' for five years in a row (as at February 2026) and it's still investing in its technology.
Ubank's app was one of the first on the market that gave customers the ability to connect their accounts held at other financial institutions, so all their banking is visible in one place.
Applying for a home loan
In the home lending space, ubank offers an online application that takes around 20 minutes to complete. Where customers opt to lodge an assisted application, the process may take around an hour.
Once the application has been submitted, the ubank app also offers a cutting edge feature that allows home loan applicants to monitor how their application is progressing.
Seeing where you're at with App Tracker
Ubank's so-called App Tracker allows applicants to track the progress of their applications in real time from submission to settlement.
The feature provides updates, sends alerts of any required actions, and allows monitoring of progress to both borrowers and brokers.
App Tracker aims to speed up the homebuying process by alerting borrowers as soon as further information is required.
By providing visibility of the assessment, valuation, and final approval process, it also aims to help borrowers with planning and timelines in their homebuying journey.
How long does ubank home loan approval take?
Ubank typically aims for a five business day turnaround time for home loan approval, but has a goal of reducing this to around two days.
Ubank home loan pros and cons
Pros
- Easy-to-understand products
Ubank's home lending products are designed to be simple and straightforward. They feature competitive interest rates and ubank's loans with annual fees are at the lower end of annual fees charged by other banks and lenders.
- No LMI on up to 90% LVR
A major drawcard in applying for a home loan with ubank is its policy of waiving lenders mortgage insurance for borrowers with as low as 10% deposit for new purchases, or 15% equity for refinancers.
Although the interest rate charged for 85%-plus LVR loans are a step up from ubank's LVR 80% and under rates, some borrowers stand to save a substantial sum by avoiding LMI and switching to a better interest rate when they build equity in their loan to 20% or more.
It also encourages younger borrowers to get a foothold in the property market sooner than having them wait to save a standard 20% deposit which can be difficult in a fast-rising property market. This, in turn, can help them reap the benefits of a rising market, allowing them to build up equity in their property sooner, giving them the opportunity to refinance their loan to a better rate in a relatively short period.
- Technology
Around a quarter of ubank's workforce are technologists who have the advantage of not having to deal with any legacy systems.
The bank prides itself on its digital experience with ubank's analytics going a step further than many other banking apps by providing insight into customers' income, spending, bills, and bill-paying.
Ubank says it's all part of its stated mission: to help more Australians be successful with money.
Its 'Connected Accounts' feature that allows users to see their bank accounts with other institutions in one place saw many customers switching to conduct the bulk of their banking with ubank, rather than using it as their 'rainy day' account.
- NAB-backed
For borrowers nervous about taking out a loan with a smaller lender, ubank is a division of one of Australia's big four National Australia Bank.
As such, it has the backing of a big player but without the red tape and legacy processes that can sometimes come with them.
- Loan turnaround time
Ubank has made a concentrated effort to streamline its home loan application and loan approval processes.
Straightforward applications can be approved in a matter of days with ubank reporting its typical loan approval timeframe is five business days.
Cons
- Does not lend to the self-employed
Those who are self-employed are not eligible for a ubank home loan. Borrowers must have PAYG employment on either a full-time, part-time, or contract basis.
Other forms of income accepted include rental or investment income and certain Australian government payments, including pensions.
- Only lends to individuals or joint partners
Ubank will approve joint loans to spouses or defacto partners who currently live together or intend to live together after settlement in the same household. All borrowers' names must appear on the property title.
It doesn't accept joint home loan applications with a sibling or in conjunction with parents.
- Does not offer construction loans
You will need to look elsewhere if you are wanting to purchase vacant land to build on. Ubank does not lend for construction purposes.
- Does not lend for all types of properties
In general terms, ubank lends for properties that are fully built, connected to power and water, and used to live in.
However, the bank doesn't provide loans for off-the-plan properties with more than three months before settlement or a stratum-titled or company share property.
It also won't loan for studio apartments, units with living areas smaller than 40 square metres, or properties that are larger than 25 acres.
- No branch access
Although Ubank is a division of NAB, their operations are entirely separate.
Ubank has no branches and is probably not suitable for those who prefer branch access or in-branch services.
What the expert says
"Ubank is the brainchild of one of Australia’s largest banks. But that doesn’t mean it can’t still offer some key points of difference in an increasingly saturated market.
Unlike many lenders, ubank doesn’t partner with a traditional LMI provider. Instead of restricting loans to borrowers with lower LVRs, it simply waives LMI for customers with deposits of at least 10%. For refinancers, the requirement is a little more strict, with applicants needing an LVR of 85% or less to switch to ubank.
Ubank also leans heavily into its digital credentials. Its streamlined online application experience and real‑time progress tracker aims to make the process smoother.
Its offerings are worth considering, particularly among ubank's target market - younger homebuyers who may be falling short of putting together a 20% home deposit."
How to apply for a ubank home loan
To apply for a home loan, you must meet ubank's lending criteria. An applicant needs to:
be 18 years of age or older
be an Australian or New Zealand citizen, or apermanent resident of Australia
live in Australia
- be listed on the property title
be employed on a permanent, casual, or contract basis (ubank doesn't lend to self-employed people)
have a good credit rating (ubank will run the report to check your credentials)
be applying either individually, or jointly with a spouse or de facto partner who they currently live with or intend to live with after settlement in the same household
Since ubank is an online-only lender, you can apply for a mortgage via its website , or via a local accredited broker.
Documents needed
Applying for a home loan will require you to submit certain documents such as:
Proof of identity validating your name, address and birth date. This can be your passport, Medicare card, driver's license, etc.
Details of your ongoing monthly expenses such as food expenses, childcare, clothing, transport, etc.
Saving accounts statements
Proof of ongoing rent or board
Assets and liability documents
For employees, ubank will typically require two recent payslips and your most recent payment summary or tax return
Frequently Asked Questions
A ubank online application can be done in 20 minutes, or for applications assisted by a ubank lending specialist, the call can take up to an hour.
Approval generally takes up to five business days unless there is a need for any additional information. Ubank is working to reduce this turnaround time for most home loan applications.
Ubank can verify your identity electronically using the personal details you have provided in your application.
Your home loan application can be unsuccessful if you don't meet the eligibility criteria, including any credit requirements, or haven't supplied all the documentation required for the process to move forward.