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UBank UHomeLoan Loan

Features

UBank offers both fixed and variable home loans, meaning you can opt for the security of a fixed rate home loan, or take advantage of the flexibility a variable home loan provides.

Once your loan is up and running, there are no ongoing fees for either fixed or variable loans.

With the fixed UHomeLoan, you are protected against any interest rate changes for a one, three or five-year fixed term.

As an added bonus, with a UHomeLoan, you can pay $20,000 in additional repayments over the fixed term without incurring break costs. But a relatively high fee applies each time you lock in a fixed rate.

The variable UHomeLoan is a flexible option as it comes with a fee-free redraw facility that allows you to draw back some cash if you are ahead on your payments.

Or you can make additional repayments, which will help you to reduce interest costs over the life of the loan.

You can have up to four splits on your UHomeLoan,  with a minimum amount of $20,000 per split. A split loan allows you to divide your total loan amount loan into different buckets, each with a different rate type and/or repayment type.

UBank also lets you select how frequently you want to pay back your loan with the options of weekly, fortnightly or monthly repayments.

You can take advantage of the interest only payment option with no repayments due on the principal amount, though you can still choose to repay any principal. Be aware though that a higher interest rate applies during the interest-only period, which is common for such loans.

UBank may give you a loyalty discount off the standard variable rate once you’ve held your home loan for three consecutive years or following a fixed rate expiry, whichever is greater. If you decide to move house, UBank’s ‘portability’ option means you can avoid the hassle of refinancing by transferring your existing UHomeloan to a new property, saving you potentially hundreds of dollars in fees.

Who is the UBank UHomeLoan Loan good for?

The UHomeLoan is a good option for those who enjoy the convenience of banking online. As an online lender, UBank has fewer overheads, which in turn means lower fees and interest rates for customers.

The UHomeLoan offers flexible features without the full bells and whistles of a home loan with a big bank.

Review - What RateCity says

The key advantage of UHomeLoans are low interest rates, low fees and a reasonable degree in how you structure and repay your home loan. You get free repayments and free redraws on variable loans, which can help you dramatically cut interest costs and access money when needed.

There is no application fee, which many other lenders charge. UBank also allows repayments on fixed home loans, which is a feature many other lenders don’t offer.

But customers do need to watch out for the fee for locking in a rate, which is relatively high. A potential downside is that it may be daunting to apply for a home loan entirely online, especially for first time home buyers.

Moreover, variable loans do not come with an offset account, which can be an effective way of cutting interest costs on your mortgage if you have surplus cash. But if you don't have too much cash sitting around, then this is no drawback at all.

UBank UHomeLoan Loan Options

For more information or to see if UBank is right for you, follow the links below.

Product
Advertised rate
Comparison rate*
Monthly repayment
Go To Site
Details

Fixed Rates from

3.69%

Advertised rate

4.08%

Comparison rate

Variable Rates from

4.13%

Advertised rate

4.10%

Comparison rate
Pros
  • No application fees.
  • No ongoing fees.
  • Additional repayments allowed.
Cons
  • $395 fee each time you lock in a fixed rate.
  • No offset account.
  • No customer branches.
Eligibility

Be an Australian resident.

Receive a regular income.

Have an Australian residential address.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $0 - $395
  • Discharge fees: $0
  • Ongoing fees: $0

The UBankHomeLoan has no application or ongoing fees over the life of the loan. However if you choose to fix your rate, a relatively high fee applies.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About UBank

UBank is an online bank operating since 2007 and owned by NAB. UBank offers the perks of a small lender, such as low fees and rates, while being backed by one of the largest lenders in Australia. 

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