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.
|Product Name||UBank UHomeLoan Variable Rate|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$100,000|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|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 $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.
- Maximum loan amount is limited to 80% of the property's 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?
- 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.