UBank UHomeLoan (Variable Rate) Review

Rates and fees last updated on

Enjoy a fee-free home loan with a lender backed by NAB

The UBank UHomeLoan offers a low variable interest rate, a $0 application fee and no ongoing maintenance fees. However, if you would prefer the certainty of a fixed rate home loan UBank offers the UBank UHomeLoan Fixed Rate.

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)
4.09% p.a.
Comparison Rate
4.09% p.a.
80% 80%
Standard Variable Rate (Investor with Investor Offer Interest Only)
4.44% p.a.
Comparison Rate
4.44% p.a.
80% 80%
Standard Variable Rate (Investor)
4.66% p.a.
Comparison Rate
4.59% 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.
  • No offset account

What do I need to know about the UBank UHomeLoan (Variable Rate)?

The UBank UHomeLoan allows you to refinance your current loan or purchase a new home, but it is not available for construction or business purposes. This loan is available as a full documentation loan only.

Are you eligible for a UBank UHomeLoan?

To be eligible for the UBank UHomeLoan, you must:

  • Currently be earning a Pay As You Go (PAYG) income from an employer (this excludes rent, Centrelink payments, superannuation or family payments as your main source of income).
  • Never have committed a financial crime or declared bankruptcy.
  • Be an Australian resident with an Australian residential address.

What are the features and benefits of this home loan?

    • Flexible loan sizes. With the Ubank UHomeLoan (Variable Rate), you can borrow from $100,000 to $2,000,000.
    • No fees: The UBank UHomeLoan (Variable Rate) comes with no application fees, ongoing fees or break fees if you pay the loan out early. There are also no fees for making additional payments towards your loan.
    • Unlimited free redraws: If you manage to get ahead with your repayments, UBank will allow you to withdraw additional funds as you need them. You can redraw as many times as you want for free provided that you withdraw more than $1,000 per redraw.
    • Maximum LVR: The maximum loan-to-value (LVR) of the UHomeLoan (Variable Rate) is 80%, with a loan term of up to 30 years.
    • Portability: If you decide to sell your property and buy another, this loan can be transferred provided the property is approved by UBank. This saves you time and money in having to reapply for a new loan.
    • Interest-only payments: This home loan allows interest-only repayments. Be aware, however, that making interest-only repayments will not reduce the principal on your home loan.
    • Split loan option: You can split your loan up to four times. This means you can have some of your loan calculated on a variable rate and the other portion calculated on a fixed-rate. This can save you money if interest rates rise, while giving you savings if interest rates drop.
    • Online account management: UBank is an online lender so it allows you to perform redraws and additional repayments using 'My UHomeLoan'. In addition, it provides a 24-7 customer service hotline.

What fees and charges come with this loan?

There are no ongoing, annual or applications fees charged with the Ubank UHomeLoan (Variable Rate).

  • Does the UHomeLoan come with an offset account?

This home loan does not come with an offset account. Offset accounts are not usually offered on basic home loans like the UBank UHomeLoan. This helps to bring the cost of the loan down.

How do I apply for the UBank UHomeLoan (Variable Rate)?

If you believe the Ubank UHomeLoan (Variable Rate) sounds right for you, click on the 'go to site' or 'enquire now' button and you'll be redirected to the Ubank website or to a mortgage broker page where you can discuss your eligibility.

The application process consists of several stages; the application, approval, verification, valuation, assessment, approval and settlement.

During the application process, you'll be asked to offer information about your income, assets, liabilities and expenses.

Does UBank offer pre-approval?

The UBank UHomeLoan offers pre-approval for new purchases only. UBank calls this 'Approval in Principle' and it lasts for 60 days.

Approval in principle takes 3-5 days to receive, and you can apply for this by clicking the green 'Go to site' button on this page and starting an application with UBank.

What documents are required?

The paperwork required for the application will depend on whether you're purchasing a property or refinancing an existing loan. However, when you apply for the Ubank UHomeLoan (Variable Rate) , you'll generally need to provide:

  • Loan purpose. You'll need to specify the loan purpose (e.g. new purchase or refinance).
  • Personal details. Ubank will require you to disclose your full name, date of birth, residential address and contact details. You'll need to provide a copy of your driver's license and your passport which clearly shows your signature and photo.
  • Employment details. When you apply for the UBank UHomeLoan (Variable Rate), you'll need to provide two recent payslips that specify your employer's name, the pay period and your gross or net income. You may also need to lodge a signed employer consent form. You'll need to provide evidence of other income (e.g. government payments or rental income).
  • Liabilities. You'll need to provide statements for any liabilities that you have, such as credit cards or personal loans.
  • Property details. During the application, you'll need to put forward the contract of sale. This document should identify the property type, address, purchase price, vendor's details and the signature of all parties.

Once you've completed your application, you can download the documents checklist from your application tracker.

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This page was last modified on 9 August 2017 at 4:03pm.

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152 Responses

  1. Default Gravatar
    SandraSeptember 6, 2017

    Can the mortgage be paid via 2 bank accounts, eg want to borrow $320000, can we have 160000 in two separate bank accounts but same mortgage. WE own our house but have two separate bank accounts in two separate names, value house $860000, owe current $280000, but wish to borrow 320 over 15years, one mortgage, 160000 in ech bank account???? Thanks

    • Staff
      ArnoldSeptember 7, 2017Staff

      Hi Sandra,

      Thanks for your inquiry

      Joint accounts work well for people who spend money in a similar way. Both people should agree how and when they will deposit and withdraw money, to meet the same goals. It can also make joint payments like mortgage, rent and other bills easier to manage.

      Hope this information helps

      Cheers,
      Arnold

  2. Default Gravatar
    SandeepApril 12, 2017

    Hello. I have a Home Loan on the Variable Rate @ 5.22%
    making repayments per Mth of $16 HND owing around $111k .
    The Remaining Term being: 15yrs & 1mth .
    I know I could do far better switching to a UBank Home Loan any suggestions ?

    • Staff
      HaroldApril 12, 2017Staff

      Hi Sandeep,

      Thank you for your inquiry.

      Unfortunately, we cannot recommend what is best for you. Our company finder.com.au is a financial comparison website and general information service designed to help consumers to make a better decision. Please note we do not represent any company we feature on our pages.

      If you believe the Ubank UHomeLoan (Variable Rate) sounds right for you, click on the ‘go to site’ or ‘enquire now’ button and you’ll be redirected to the Ubank website or to a mortgage broker page where you can discuss your eligibility. Typically, the application process consists of several stages; the application, approval, verification, valuation, assessment, approval and settlement.

      I hope this information has helped.

      Cheers,
      Harold

  3. Default Gravatar
    RobynMarch 20, 2017

    Can you tell me what settlement and valuation fee you charge please

    • Staff
      AnndyMarch 21, 2017Staff

      Hi Robyn,

      Thanks for your question.

      There are no settlement and valuation fees for this home loan product.

      Cheers,
      Anndy

  4. Default Gravatar
    KasiaFebruary 5, 2017

    Are those with not so good credit history considered for applying?

    • Staff
      AnndyFebruary 6, 2017Staff

      Hi Kasia,

      Thanks for your credit score.

      Generally, The UBank UHomeLoan requires applicants to have good credit rating.

      Please do check this page for lenders who may still consider you for a home loan.

      Cheers,
      Anndy

  5. Default Gravatar
    nackpDecember 14, 2016

    who owns Ubank

    • Staff
      AnndyDecember 14, 2016Staff

      Hi Nackp

      Thanks for your question.

      UBank is an online bank which is a division of the National Australia Bank.

      Cheers,
      Anndy

  6. Default Gravatar
    BigDecember 12, 2016

    When I refinance a loan of $308k of property purchase 3 years ago at $385k, what is the upfront cost involved? Does it still involved Stamp Duty like the initial finance?

    • Staff
      AnndyDecember 12, 2016Staff

      Hi Big W,

      Thanks for your question.

      There are different sets of fees when refinancing your mortgage. You can check them out on this page.

      Cheers,
      Anndy

  7. Default Gravatar
    LukeNovember 5, 2016

    Is there a process to transfer a nab home loan over to UBank or is it treated as a refinance like it would be from any other bank? Thanks

    • Staff
      AnndyNovember 7, 2016Staff

      Hi Luke,

      Thanks for your question.

      Home loan refinancing is when you’re moving from one home loan to another, and this can be with the same or a new lender. So yes, if you are moving from NAB to UBank, you may have to undergo the normal home refinancing process.

      Cheers,
      Anndy

  8. Default Gravatar
    AnnieAugust 27, 2016

    I am buying a home to live in under my name only. I previously purchased properties with my ex husband and this will be my first home on my own. Our current home will be sold. Am I considered a first home buyer?

    • Staff
      MaySeptember 1, 2016Staff

      Hi Annie,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.

      Generally, you will be considered or eligible for the FHOG if you are an Australian citizen or permanent resident, buying or building your first home in Australia, and will reside in the property (main place of residence) within 12 months of the settlement and live in it continuously for at least 6 months. I suggest that you check with your state’s office of revenue website and find out if you’re eligible.

      You can also find more information about First Home Owner Grant (FHOG) scheme on this page.

      Cheers,
      May

  9. Default Gravatar
    MichaelAugust 21, 2016

    Hi,
    Do you do a loan LVR 95%?

    • Staff
      AnndyAugust 22, 2016Staff

      Hi Michael,

      Thanks for your comment.

      If you are looking for a home loan with 95% LVR, please refer to this page to compare your options.

      Cheers,
      Anndy

  10. Default Gravatar
    sunnyAugust 15, 2016

    I am looking for an investment loan with my super….Do you provide loans for investment loan with super?
    If so what is the rate?

    Cheers
    Sunny

    • Staff
      JodieSeptember 7, 2016Staff

      Hi Sunny,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service, we are not directly affiliated with any of the lenders we feature on our website.

      At present UBank only offer home loans to standard borrowers, that we are aware of, and do not at present have loans available for investment through super. You can reach out to them directly to see if this has changed or they just don’t advertise it or you can contact a mortgage broker to discuss your personalised lending needs.

      Regards
      Jodie

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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