New property purchases with the UBank UHomeLoan

Rates and Fees verified correct on December 5th, 2016

Previously only available for refinancers, the UBank UHomeLoan Variable Rate home loan is now available for everyone

With one of the most competitive variable interest rates in the Australian market, UBank's UHomeLoan is suitable for first home buyers, investors, owner occupiers and those refinancing.

Interest Rate Max Insured LVR Max LVR
Real Reward Offer (Owner Occupier Interest Only)
4.13% p.a.
Comparison Rate
4.13% p.a.
80% 80%
Standard Variable Rate (Investor with Investor Extra Offer P&I)
3.89% p.a.
Comparison Rate
3.89% p.a.
80% 80%
Standard Variable Rate (Investor with Investor Offer Interest Only)
4.24% p.a.
Comparison Rate
4.24% p.a.
80% 80%
Standard Variable Rate (Investor)
4.46% p.a.
Comparison Rate
4.39% p.a.
80% 80%
Standard Variable Rate (Owner Occupier Interest Only)
4.46% p.a.
Comparison Rate
4.39% p.a.
80% 80%
Standard Variable Rate (Owner Occupier P&I)
4.17% p.a.
Comparison Rate
4.10% p.a.
80% 80%
Standard Variable Rate Value Offer (Owner Occupier P&I)
3.74% p.a.
Comparison Rate
3.74% p.a.
80% 80%
Product NameUBank UHomeLoan Variable Rate
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$100,000
Maximum Loan Amount$2,000,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR80%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionYes
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options

Application Fee$0
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$0 p.a.
Settlement Fee$0
Discharge Fee$0

Pros

  • There is $0 application fee.
  • You can make extra payments at any time and withdraw the funds using the free redraw facility.
  • You can split your loan to keep personal and investment funds separate.

Cons

  • Maximum loan amount is limited to 80% of the property value.
  • This product is not suitable for self-employed borrowers.

While the interest rate shouldn’t be the only thing to consider when deciding between mortgages, it is still an important factor in your home loan comparison journey, as they help define what your repayments will be. This is especially the case for first home buyers, as they’re just settling into the habit of making repayments and affordability is the main concern.

Even if you already own an existing property, you may still want to compare your current home loan with the UHomeLoan. If you find that your repayments will be cheaper with the UHomeLoan, then you may want to consider refinancing. Since UBank is an online lender, you can complete the whole process online with 24/7 phoning assistance if you need help. Be mindful that discharge costs may be applicable to your previous loan so always get a quote from your existing lender before committing to anything.

Investors can also benefit from the interest-only component of the UHomeLoan where you’ll only be paying off the interest due on your loan for an agreed timeframe. You can still make additional repayments on top of your regular repayments, which could be a useful feature in your investment strategy.

After having your UHomeLoan for three years, you may be eligible for a loyalty discount of 0.10% p.a. off the variable interest rate and the discount applies for the life of your home loan.

Pros and cons of the UBank UHomeLoan

Pros

  • Competitive interest rate. As mentioned before, the standard variable interest rate for this loan is one of the most competitive in the Australian market.
  • No application or ongoing admin fees. UBank have waived any ongoing costs so all you need to worry about are the repayments.
  • Additional repayments, redraw facility, portability. There are a range of features included in this home loan, which are not often seen in home loan products that are similar.

Cons

  • No offset account. You won’t be able to offset your principal with an offset account, so you won’t be able to pay minimal interest.
  • Maximum 80% Loan to Value Ratio. This means that a 20% deposit of the property’s value is required for this loan.

About UBank

UBank is an online division of NAB, which means that they have the financial backing of one of Australia’s big four. All deposits within UBank are also covered by the Australian Government Guarantee under the Government Financial Claims Scheme, which protects you up to $250,000 per person per institution.

Be mindful that all banking is done online, with 24/7 phone support if you need it. UBank does not have any branches, so if you prefer speaking to somebody face to face, you may want to consider another lender.

New property purchases with the UBank UHomeLoan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 4 January 2016 at 15:52.

UBank UHomeLoan Variable Rate

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $0 / $0

  • Max LVR

    80%

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