UBank UHomeLoan (Variable Rate)

Rates and Fees verified correct on August 24th, 2016

Enjoy a fee-free home loan with a competitive variable interest rate

The UBank UHomeLoan is a competitive product that 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 offer the UBank UHomeLoan Fixed Rate.

Interest Rate Max Insured LVR Max LVR
Real Reward Offer (Owner Occupier Interest Only)
4.03% p.a.
Comparison Rate
4.03% p.a.
80% 80%
Standard Variable Rate (Investor with Investor Extra Offer P&I)
3.79% p.a.
Comparison Rate
3.79% p.a.
80% 80%
Standard Variable Rate (Investor with Investor Offer Interest Only)
4.14% p.a.
Comparison Rate
4.14% p.a.
80% 80%
Standard Variable Rate (Investor)
4.36% p.a.
Comparison Rate
4.29% p.a.
80% 80%
Standard Variable Rate (Owner Occupier Interest Only)
4.36% p.a.
Comparison Rate
4.29% p.a.
80% 80%
Standard Variable Rate (Owner Occupier P&I)
4.07% p.a.
Comparison Rate
4.00% p.a.
80% 80%
Standard Variable Rate Value Offer (Owner Occupier P&I)
3.64% p.a.
Comparison Rate
3.64% 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 loan is not available for investment purposes.
  • This product is not suitable for self-employed borrowers.

Things to consider 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. It's worth noting that 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.

UBank UHomeLoan (Variable Rate) features

    • 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 given that the property is approved by UBank. This saves you time and money in having to reapply for a new loan.
    • Interest-only payments: You can take a break from paying both the principal and interest with the UHomeLoan and pay only the interest portion of your loan. This can be helpful if you're renovating or if you have an investment property you wish to hold onto for a short time. Interest-only payments can also reduce your loan repayments for a set period.
    • 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.

Fees for the Ubank UHomeLoan (Variable Rate)

There are no ongoing, annual or applications fees charged with the Ubank UHomeLoan (Variable Rate). This is a fee-free home loan which means you can focus on meeting your mortgage repayments.

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 to 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 the 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.

Required documentation

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.

UBank UHomeLoan (Variable Rate) Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 14 July 2016 at 22:22.

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134 Responses to UBank UHomeLoan (Variable Rate)

  1. Default Gravatar
    Michael | August 21, 2016

    Hi,
    Do you do a loan LVR 95%?

    • Staff
      Anndy | August 22, 2016

      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

  2. Default Gravatar
    Peter | August 10, 2016

    can i use this ubank loan product to buy vacant land

    • Staff
      Anndy | August 11, 2016

      Hi Peter,

      Thanks for your comment.

      The UBank UHomeLoan (Variable Rate) is available only for refinancing your current loan or purchasing a new home. If you’d like a loan for purchasing a vacant land, you can refer to the lenders listed on this page.

      Cheers,
      Anndy

  3. Default Gravatar
    Stan | August 10, 2016

    Hi there, in regards to the extra repayment option, would you know if uBank has a prepayment fee penalty? Thanks

    • Staff
      May | August 10, 2016

      Hi Stan,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage experts and don’t offer any of the products or services on our website. We also do not represent UBank.

      In the UBank’s home loan T&Cs, it stated that you may repay the Facility (home loan account) in full at any time. Also, you may pay an additional amount in repayment of the home loan at any time provided that you give UBank at least two business days notice of your intention to make the early repayment.

      Please note though that making additional payments to a fixed rate home loan may result in an “Economic Event.” If there is an Economic Event, Lender’s Early Repayment Loss may be payable. For your reference and for the complete details of the T&Cs, please refer to your email with the link to the UBank Home Loan T&Cs.

      I hope this has helped.

      Cheers,
      May

  4. Default Gravatar
    Suraj | August 3, 2016

    What is the biggest risk of moving a home loan from big 4 banks to other lenders. The other lenders include credit union, UBank etc.
    I was told if that lender bankrupts the borrower could be in trouble. Is this true.

    • Staff
      May | August 5, 2016

      Hi Suraj,

      Thanks for your inquiry.

      A non-bank lender is a lender that does not hold a banking licence. They offer home loan products but they are not a bank, building society or credit union. To be sure that it’s safe to borrow from a non-bank lender, you’ll have to check if they abide by the Consumer Credit Code and their actions are overseen by the Australian Securities and Investments Commission (ASIC).

      You can also find more information from our article on what’s the difference between home loan lenders?

      I hope this has helped.

      Cheers,
      May

  5. Default Gravatar
    | July 11, 2016

    I require bridging loan and ask if UBank provides such finance?

  6. Default Gravatar
    George | June 14, 2016

    Can I get a pre approval for the home loan. I am looking for the property now

    • Staff
      Marc | June 15, 2016

      Hi George,
      thanks for the question.

      UBank does offer pre approval for purchases. You can contact them directly by clicking the green ‘go to site’ button on this page.

      I hope this helps,
      Marc.

  7. Default Gravatar
    Gillian | June 6, 2016

    Hi there, I am looking at buying my first home. I have quiet a large amount of credit cards but am wanting to put them into a personal loan and close them. Is there an opportunity to do this with you guys at all

    Thank you
    Gillian

    • Staff
      Marc | June 7, 2016

      Hi Gillian,
      thanks for the question.

      You’ve come through to finder.com.au, a comparison service. UBank currently doesn’t offer any debt consolidation services, but you can read more about how they work here.

      You may want to talk to a mortgage broker about what lenders offer these services.

      I hope this helps,
      Marc.

  8. Default Gravatar
    Frank | June 2, 2016

    You advertise fee free loan 3.74%
    Is there a valuation fee in transferring to your bank and is your bank Government Guaranteed

    Can you outline the steps and information required and the time frames

    • Staff
      Marc | June 6, 2016

      Hi Frank,
      thanks for the question.

      Just to be clear, you’re currently on finder.com.au, a comparison service, so I can’t comment on Ubank’s behalf. But to answer your question, UBank does not charge a valuation fee, and is covered by the government guarantee of $250,000 per person.

      The UBank website lists the steps in detail, but to summarise:

      1. Fill in the online application
      2. Submit your supporting documents, including your PAYG income verification, employer consent form, income verification, credit cards and personal loans statements, existing home loan statements (if refinancing), ID documents and any other required documents.
      3. Get the property is valued
      4. UBank will evaluate your application
      5. UBank will hopefully approve you
      6. Your loan will settle

      I hope this helps,
      Marc.

  9. Default Gravatar
    JLK | May 28, 2016

    Hi We are in process with an accountant for setting up an australian property investment company with shareholders my foreign company that will invest400K$ and my son and his wife, all the two australian citizen and employees with gross income 230K$ a year. The australian company would borrow an home loan about 1000K$ for buying a villa in melbourne suburb. This australian company will rent the home at my son and wife to refund the loan. I saw on UBANK web site rate home loan at 3,89%? is it your best rate for only first home buyer or I may expect such rate with australian property investment company? Best Regards

    • Staff
      Marc | May 30, 2016

      Hi JLK,
      thanks for the question.

      You’ve come through to finder.com.au, a comparison and information service. As we don’t represent UBank I cannot comment on whether or not UBank could offer you a better rate, it’s best to contact them directly regarding this.

      Regards,
      Marc.

  10. Default Gravatar
    phil | May 23, 2016

    does Ubank have a broker to discuss scenarios on investment loans.

    • Staff
      Jodie | May 23, 2016

      Hi Phil,

      Thank you for contacting finder.com.au we are a financial comparison website and general information service.

      UBank unfortunately, don’t offer any of their home loans through a broker but you can reach out to them directly by clicking the ‘Go to site’ button on this page to discuss the different options available through them for a home loan for an investment property.

      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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