UBank home loans review

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on January 07, 2022 Fact Checked
UBank home loans review

UBank is an online-only lender launched in 2008 as a division of National Australia Bank (NAB). As an online bank, UBank has no physical branches.

With no branches UBank says it can put more energy into offering great rates, creating useful products and looking after customers with local support.

Other than mortgages, UBank also offers other financial products and services such as savings accounts, term deposits and SMSF accounts.

“We believe that happiness is more important than money. That satisfaction can come from less, not just more. So we’ve removed the unnecessary extras. Our aim is to be just the bank you need, plain and simple,” UBank said.

“Since 2008, our focus has been taking care of our customers and our community with knowledgeable, honest support and convenient, easy-to-use banking products.”

What home loans does UBank offer?

Some of UBank's key home loan products include: 

  • One and three year fixed rates starting from 1.79% p.a. for new Owner Occupier Principal & Interest loans up to 80% LVR.

  • Variable Home Loans from 1.99% p.a. with unlimited redraw.

  • Both have $0 ongoing and annual fees.

Check out some of UBank’s home loan offerings in the table below.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details

Discount Offer Variable Home Loan OO P&I (LVR < 80%)

VariableMore details

Discount Offer for Investor Variable P&I Rate

VariableMore details

Discount Offer Variable Home Loan OO P&I (LVR > 80%)

VariableMore details

UHomeLoan - Standard Variable OO (Principal and Interest)

VariableMore details

Discounted Variable Rate (Owner Occupied Interest Only) (LVR > 80%)

VariableMore details

Inv UHomeLoan Variable (Interest Only)

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *Comparison rate is based on a loan of $150,000 over a term of 25 years. Please note the comparison rate only applies to the examples given Rates correct as of January 17, 2022. View disclaimer.

How does UBank stack up to the competition? Check out some other home loan offerings in the table below.

Lender
Advertised rate Comparison rate* Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval

VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
FixedMore details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Fixed Home Loan 1 year (Principal and Interest) (LVR < 80%)

  • Make up to $20,000 additional repayments per fixed term
  • Redraw available – lets you access any extra loan repayments you’ve made
  • Choose to rate lock for 90 days (fee applies)
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • No application or ongoing fees.
  • 100% free offset sub account.
  • Fast online application, approval in minutes not weeks.
  • Mobile app, Visa debit card, Apple and Google Pay
  • Refinance loans and variable rates only.
VariableMore details
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees
ZERO APPLICATION FEES

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
  • No upfront or ongoing fees

Rates correct as of January 17, 2022. View disclaimer.

Am I eligible for a UBank home loan?

To be eligible you must:

  • Be an Australian or New Zealand Citizen or Permanent Resident

  • Regular PAYG income or self-employed income (sole trader or in a partnership)

  • Borrowing 85% or less of your property value for Owner Occupier loans

  • Borrowing 80% or less of your property value for Investor loans

What home loan features does UBank offer?

  • No ongoing fees: UBank variable mortgages have no ongoing fees or application fees

  • Flexible payments: You can make weekly, fortnightly, or monthly loan repayments on a number of its loans 

  • Split loans: You can split your mortgage between fixed and variable interest rates up to four times with a minimum split of $20,000

  • Unlimited redraws: UBank's variable mortgages have no limit on redraws of extra repayments

  • Flexible & convenient online banking: There are a range of online features for your convenience, including an online application tracker.

  • Discounts for loyalty: If you've held your mortgage for three straight years (or stay after your fixed-rate expires), you can get a 0.10% point loyalty discount off your variable rate. 

Why choose UBank over the lenders?

UBank is an online bank, and since they have no branches, they have fewer costs than traditional banks.

“We pass these savings straight to you by offering great rates backed up with real, Australian based support,” UBank said.

Honesty & Integrity

“We’re completely transparent with our interest rates. We offer rewards for customer loyalty, and our local support team will treat you like a real person, not an account number.”

Competitiveness

“We offer highly competitive rates with no hidden agendas, and we’ve kept fees to a minimum across all our products. We regularly review all our application processes to make sure they’re as easy and supportive as they can be.”

Innovation

“We’ve made applying fast and easy online. Our team of experts is constantly innovating to improve what we offer.”

Security

“As part of NAB we can take advantage of the financial strength and global capabilities of one of Australia’s most established banks.”

How to apply for a UBank home loan

To apply for a home loan you must meet their lending criteria:

  • You must be 18 years of age or older

  • You must be an Australian or New Zealand citizen or Australian Permanent Resident

  • You must be residing in Australia and have an Australian mobile number

  • You must have an email address

  • You must be outside your probationary period of employment

  • You must be buying a house or unit that's at least 50 sqm

  • You must be purchasing or refinancing an established property

Since UBank is an online-only lender, you can apply for a mortgage via its website.

How to apply with UBank

If you’re looking to refinance with U Bank, simply download their App or head to their website. You’ll need to enter details like:

  • Proof of identity validating your name, address and birth date. This can be your passport, Medicare card, drivers licence 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

  • If you are an employee UBank will typically require two recent payslips and the most recent payment summary or tax return

  • If you are self-employee UBank will typically require the last two years of company tax returns


Image by Toa Heftiba via Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Aaron joined Savings.com.au in 2021. He is a finance journalist with a keen interest in property, the share market, and improving financial literacy in young Australians.

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