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.

"At UBank, we’re all about helping you be more successful with money.

"Think of us as your daily money companion. One that brings together the ability to see all your money in one place with smart features and real-time insights designed to help you get ahead.

"You’ll learn what it feels like to save more, see exactly where you’re spending and own your own home faster. When you’re with ubank, we’ll help you achieve real momentum with money."

What home loans does UBank offer?

Some of UBank's key home loan products include: 

  • One year fixed rates starting from 2.99% p.a. for new Owner Occupier Principal & Interest loans up to 80% LVR.

  • Variable Home Loans from 2.09% 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

Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
GET APPROVED FASTER WITH A DIGITAL APPLICATION
  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
GET APPROVED FASTER WITH A DIGITAL APPLICATION

Neat Variable Investment Loan (Principal and Interest) (LVR < 60%)

  • Split Loan Option
  • Unlimited additional repayments
  • Free redraw facility
Fixed
More details
USE A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER
  • 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

Own Home Loan Fixed (Principal and Interest) 1 Year (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)
Fixed
More details
A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER
  • 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)
A MARKET LEADING APP TO HELP YOU PAY OFF YOUR LOAN SOONER

Investment Loan Fixed (Principal and Interest) 1 Year (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)
Fixed
More details
  • 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)

Investment Loan Fixed (Principal and Interest) 2 Years (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)
Variable
More details
EASY DIGITAL APPLICATION
  • 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)
EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR 70%-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)
Fixed
More details
  • 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)

Own Home Loan Fixed (Principal and Interest) 2 Years (LVR 80%-85%)

  • 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)
Variable
More details
COMPLETE YOUR APPLICATION ONLINE
  • 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)
COMPLETE YOUR APPLICATION ONLINE

Variable Home Loan (Interest Only) (LVR < 60%)

  • 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)
Fixed
More details
  • 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)

Own Home Loan Fixed (Principal and Interest) 1 Year (LVR 80%-85%)

  • 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)
Fixed
More details
  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees

Own Home Loan Fixed (Principal and Interest) 2 Years (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
Fixed
More details
  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees

Own Home Loan Fixed (Principal and Interest) 3 Years (LVR < 80%)

  • Easy, digital application process
  • Market leading app to help you pay off your loan sooner
  • No on-going fees
Fixed
More details

Own Home Loan Fixed (Principal and Interest) 3 Years (LVR 80%-85%)

    Fixed
    More details
    BUDGET WITH CONFIDENCE ON A FIXED LOAN
    BUDGET WITH CONFIDENCE ON A FIXED LOAN

    Own Home Loan Fixed (Interest Only) 3 Years (LVR < 80%)

      Fixed
      More details
      • Easy, digital application process
      • Market leading app to help you pay off your loan sooner
      • No on-going fees

      Own Home Loan Fixed (Principal and Interest) 5 Years (LVR < 80%)

      • Easy, digital application process
      • Market leading app to help you pay off your loan sooner
      • No on-going fees
      Fixed
      More details
      • Great Rates
      • Easy to apply
      • Market leading app helps you pay off you loan sooner

      Own Home Loan Fixed (Principal and Interest) 5 Years (LVR 80%-85%)

      • Great Rates
      • Easy to apply
      • Market leading app helps you pay off you loan sooner

      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 be 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. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 28, 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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      author-avatar
      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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