You could get a concrete idea of your interest costs with a UBank UHomeLoan Fixed Rate
One of the benefits of fixing in your interest rate is that you have the certainty that your repayments can’t increase throughout the fixed term. This could be ideal for anyone who wants predictable repayments for a safe family budget. It could also be great for investors who want a level of assurance that their investment loan costs are fixed.
UBank offers a range of fixed rates for different terms, and is backed by the National Australia Bank (NAB), one of Australia's big four banks.
|Product Name||UBank UHomeLoan Fixed|
|Interest Rate Type||Fixed|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$100,000|
|Maximum Loan Amount||$2,000,000|
|Minimum Loan Term||10 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||No|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$0 p.a.|
- There is a annual service fee of $0
- You can create splits on your loan so that part is fixed and part stays variable
- If you want to make extra payments, you can pay these into the variable split portion of your home loan at any time
- No extra payments allowed on the fixed home loan during the fixed term
- There is no redraw facility on the fixed home loan during the fixed term
- There is a Rate Lock fee which only applies if you choose the Rate Lock option
Are you eligible for a UBank UHomeLoan Fixed Rate?
UBank has a number of criteria that each borrower must fulfil before being considered for application. If you want to apply for the UBank UHomeloan Fixed Rate you must:
- Be earning a PAYG income from an employer, meaning your main source of income is not rent, Centrelink payments, superannuation or family payments
- Never have declared bankruptcy
- Never have committed a financial crime
- Be an Australian resident with an Australian residential address
Features and benefits of this home loan
The UBank UHomeLoan Fixed Rate loan is suitable for refinancing and new purchases. This means if you’re currently paying a higher rate of interest with another lender, you could potentially benefit by refinancing over to UBank. You’ll reduce the amount of interest you pay on your mortgage, slashing your monthly repayments.
- Split loan options : You’re able to split your loan so that a portion of it is set at the fixed rate, while the remaining portion stays on the variable rate. UBank will allow up to four account splits, which can be great for people wanting separated payment or accounting arrangements for investment or personal uses.
- There are no monthly account fees on this home loan : This saves you over the course of the life of the loan.
- No application fees : There are no application fees for the UBank UHomeLoan, however you will have to pay a $395fee to lock in your rates just incase they go up before your loan has settled.
- The maximum amount you’re able to borrow on this loan is capped at 80% of the property value : The minimum loan amount available is $100,000. The maximum loan amount is capped at $2,000,000.
- Payments can be set to principal and interest: Where a portion of every payment you make covers the interest due and the remaining portion reduces your balance a little more each month.
- Repayment flexibility: You are able to elect to make your repayments weekly or fortnightly instead of just monthly repayments. Making more regular repayments saves you more money in interest, and can better suit how you're paid.
- Fees may apply: Keep in mind that break fees may apply if you pay off your fixed rate home loan early. This may include selling the property or refinancing your loan over to another lender before the end of the fixed term. If you know you’re likely to sell your home within that time, you may benefit by choosing a shorter fixed rate term or remaining on a variable rate so you can avoid being charged those fees.
- Additional repayments: If your loan was approved on or after 28 September 2013, you can make up to $20,000 in additional repayments during the fixed term. For all other loans you may be charged break fees for making additional payments into your fixed rate home loan. They call this fee the “Early Repayment Loss” amount and it only applies to any extra payments made into a fixed rate home loan above the minimum repayment level. If you intend to make additional repayments off your home loan in an effort to pay it off early, you may want to consider choosing a split facility. This lets you benefit from locking in only a portion of your home loan and taking advantage of the low fixed rate. The other portion stays on the variable rate, which does allow you to make extra payments at any time without penalty. One benefit UBank offers for making additional repayments off your variable loan portion is that you can apply to have your remaining payments recalculated. This may be a considerable benefit if you happen to receive a large lump sum that you want to pay into your mortgage. UBank will work out your reduced repayment amounts based on your new balance and the remaining loan term for you.
- Accessibility: You are able to access your home loan account at any time using UBank’s secure online banking portal. You can log in and view your statements, as well as see any payments you’ve made and interest amounts charged. You can also change your payment frequency via your online banking account.
Note: There is no redraw facility available on a fixed rate home loan with UBank. The redraw feature is only available on variable rate home loans, so if you wish to use this facility you may need to think about splitting your loan.
Fees you can avoid
- Monthly fee. Similarly, there are no ongoing admin fees.
- Break costs $Varies. You will need to pay break costs if you intend to repay all or any part of your loan early.
Fees you can't avoid
- Application fee $395. This fee is charged to protect against any interest rate change.
Calculate your repayments by filling in some of your details
How to apply for this home loan
If you would like to apply for this loan, please click 'go to site' to be safely redirected to the application page. The online application form is secure so your information is always kept completely confidential. You will need to be older than 18 at the time you apply and you need to be a permanent resident of Australia. If you're currently an American resident, UBank advises that you get in touch with them directly to start an application.
- You have an Australian residential address
- You're currently receiving PAYG income from an employer as your primary source of income. Please note that rental income, unemployment benefits, superannuation, pension and family payments are not considered as a primary source of income.
- You have never been declared bankrupt and you've never committed a financial crime
The application is set out in a very clear step-by-step manner, so you simply fill out the information required. When you’re done, press the submit button and your application will be processed.
You will need to provide
- Your mobile phone number and email address. If you're opening a joint application, both applicants will need have different email addresses.
- If you intend to refinance, a recent home loan statement
- Details about your income, assets and expenditures
You’re able to track the progress of your application online as well. This lets you know whether it’s still being assessed or whether further information is required, or whether it’s moved on to the approval stage.