The UBank UHomeLoan Fixed Rate can give you the security of knowing your interest rate won't change
One of the benefits of fixing in your interest rate is 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 LVR | 80% |
| Maximum Insured LVR | 80% |
| Mortgage Offset Account | No |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | No |
| Split Loan Facility | Yes |
| Fixed Interest Option | Yes |
| Loan Portable | No |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $395 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Ongoing Fees | $0 p.a. |
| Settlement Fee | $0 |
| Discharge Fee | $0 |
Pros
- 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
Cons
- 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?
To qualify 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 save money by refinancing with 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 a 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.
- No monthly account fees: 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 in case rates rise before your loan has settled.
- Maximum loan-to-value ration of 80%: 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: This means a portion of every payment you make covers the interest due and the remaining portion reduces your initial balance.
- Repayment flexibility: Repayments can be made weekly, fortnightly or monthly. 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 break 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. If you want to make additional repayments you may want to consider choosing a split facility. If you make additional repayments on the variable rate portion of your loan, 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 and the remaining loan term based on your new balance.
- Accessibility: You can 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.
What fees and charges come with this loan?
- Break costs Varies $. You will need to pay break costs if you intend to repay all or any part of your loan early.
- Application fee $395. This fee is charged to protect against any interest rate change.
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 must be over 18 years of age 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.
Eligibility
- 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
You will need to provide
- Your mobile phone number and email address. If you're opening a joint application, both applicants will need to have different email addresses.
- If you intend to refinance, a recent home loan statement
- Details about your income, assets and expenditures
You can track your application process online to see whether your application is being assessed, whether further information is required or if it’s moved on to the approval stage.
UBank site says they only provide 30 year loan terms, I am after 25 year term. Your site says terms vary from 10 years to 30 years. Is your info correct? Is there a way to get 25 year loan with ubank?
Hi Peter,
Thank you for getting in touch with finder.
It is true that all of their UHomeLoan terms are 30 years however if you have a variable rate UHomeLoan, you can make additional repayments of any amount at any time completely fee free so you can repay in less than 30 years.
As a friendly reminder, while we do not represent any company we feature on our pages, we can offer you general advice.
I suggest that you get in touch with UBank for more info on home loans and other financial products they offer.
I hope this helps.
Have a great day!
Cheers,
Jeni
Who are the mortgage brokers, who deal with U bank investment loans, I am interested in one to give me a ring? Thanks
Hi Jelly,
thanks for the question.
Unfortunately we’re currently unaware of any mortgage brokers who include UBank on their lending panel, but most mortgage brokers should be aware of their product and can help answer questions about whether or not it would suit you.
I hope this helps,
Marc.
How much is the exit fee/termination fee of this 3 year fixed rate loan?
Hi Sew,
Thanks for reaching out.
The break fee for the Ubank UHomeLoan Fixed Rate will vary depending on the economic conditions at the time, the loan size, and when exactly in the loan period you request the break.
As an estimate, it may start at around a few hundred dollars but it does depend on a range of factors as mentioned above.
If you would like to be quoted a figure for this fee, please get in touch with Ubank directly.
Kind regards,
Belinda
Will there be any valuation fee for the 3 year fixed rate loan?
Hi Sew,
thanks for the question.
There are no valuation fees for the 3 year fixed rate UHomeLoan.
I hope this helps,
Marc.
Dear Sir, / Madam,
I need home loan for construction of a new home. I live in Pakistan so please send me the process for a loan.
Sajid
Hi Sajid,
thanks for the question.
Unfortunately this loan is only available to purchase Australian property.
Cheers,
Marc.
Can I have a fixed rate 3 year investment loan with a trust with individual trustees holding the property?
Hi Sjeve,
Thanks for your question.
Unfortunately UBank only have a facility for personal accounts at this time.
Cheers,
Shirley
Current loans $16k left on home loan.
Home value $650k
LOC loan $28,000
Investment loan $452K
Property worth $430k
Want to refinance.
Combine home loan and LOC New loan $44k Interest and principal
Investment property loan $452k Interest only.
What is the best you can do for us?
Thanks,
John
Hi John,
Thanks for your question.
Unfortunately you’ve come through to finder.com.au, an online comparison service. We are not directly affiliated with UBank, so we can’t make offers on their behalf.
If you would like to see what UBank can offer you, please click “enquire now” to be safely redirected to their enquiry page.
Cheers,
Shirley
how much fee to split loan . Is there any annual fee
Hi Shiu,
Thanks for your comment.
Opening a split account is free with this home loan there is also no annual fee.
Hope this helps,
Shirley