ubank home loans
Since 2007, UBank has been providing Australians with a wide range of banking products, including home loans and savings and transaction accounts. UBank makes applying for a home loan fast and simple with 24 hour customer support. UBank is an online-only lender that is backed by NAB.
Since UBank is an online bank, you’ll need to be comfortable completing a UBank home loan application online, rather than by visiting a branch. With no branches to manage, UBank is able to offer lower interest rates and fees than other more traditional banks.
UBank has won numerous awards, including Money Magazine’s “Best of the Best” award, the BAI Financial Global Product Innovation Award for its refinance mortgage UHomeloan, and the 2012 Australian Lending Award for Best Online Operator.
Home loan customers can contact UBank by phone, email, or online via the UBank website.
Pros and cons
- Flexible loan options
- Most loans have no ongoing or application fees
- Fast application and turnaround process
- Some loans offer additional discounts
- No branch network
- Loans don’t offer offset accounts
- Not available for self employed
- Not available for off the plan
Owner occupied ubank home loan rates
|Loan type||Principal & Interest rate||Interest Only|
1 Year Own Home Loan Fixed (Min Deposit 20%)
3.24% p.a. Comparison rate
3.29% p.a. Comparison rate
Own Home Loan Variable (Min Deposit 40%)
3.17% p.a. Comparison rate
3.36% p.a. Comparison rate
Own Home Loan Variable (Min Deposit 30%)
3.22% p.a. Comparison rate
3.41% p.a. Comparison rate
Own Home Loan Variable (Min Deposit 20%)
3.27% p.a. Comparison rate
3.46% p.a. Comparison rate
2 Year Own Home Loan Fixed (Min Deposit 20%)
3.47% p.a. Comparison rate
3.56% p.a. Comparison rate
3 Year Own Home Loan Fixed (Min Deposit 20%)
3.71% p.a. Comparison rate
3.84% p.a. Comparison rate
5 Year Own Home Loan Fixed (Min Deposit 20%)
4.1% p.a. Comparison rate
4.31% p.a. Comparison rate
Neat Home Loan (Min Deposit 40%)
2.65% p.a. Comparison rate
Neat Home Loan (Min Deposit 30%)
2.76% p.a. Comparison rate
Neat Home Loan (Min Deposit 20%)
2.86% p.a. Comparison rate
Neat Home Loan (Min Deposit 15%)
3.31% p.a. Comparison rate
Own Home Loan Variable (Min Deposit 15%)
3.76% p.a. Comparison rate
1 Year Own Home Loan Fixed (Min Deposit 15%)
3.8% p.a. Comparison rate
2 Year Own Home Loan Fixed (Min Deposit 15%)
3.99% p.a. Comparison rate
3 Year Own Home Loan Fixed (Min Deposit 15%)
4.2% p.a. Comparison rate
5 Year Own Home Loan Fixed (Min Deposit 15%)
4.54% p.a. Comparison rate
Investment purpose ubank home loan rates
|Loan type||Principal & Interest rate||Interest Only|
Investment Neat Home Loan (Min Deposit 40%)
2.91% p.a. Comparison rate
2.98% p.a. Comparison rate
Investment Neat Home Loan (Min Deposit 30%)
3.01% p.a. Comparison rate
3.08% p.a. Comparison rate
Investment Neat Home Loan (Min Deposit 20%)
3.11% p.a. Comparison rate
3.18% p.a. Comparison rate
Investment Home Loan Variable (Min Deposit 40%)
3.27% p.a. Comparison rate
3.29% p.a. Comparison rate
Investment Home Loan Variable (Min Deposit 30%)
3.32% p.a. Comparison rate
3.34% p.a. Comparison rate
1 Year Investment Home Loan Fixed (Min Deposit 20%)
3.35% p.a. Comparison rate
3.38% p.a. Comparison rate
Investment Home Loan Variable (Min Deposit 20%)
3.36% p.a. Comparison rate
3.39% p.a. Comparison rate
2 Year Investment Home Loan Fixed (Min Deposit 20%)
3.59% p.a. Comparison rate
3.64% p.a. Comparison rate
3 Year Investment Home Loan Fixed (Min Deposit 20%)
3.84% p.a. Comparison rate
3.92% p.a. Comparison rate
5 Year Investment Home Loan Fixed (Min Deposit 20%)
4.26% p.a. Comparison rate
4.37% p.a. Comparison rate
ubank home loan calculator
Thinking about taking out a home loan with ubank? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how ubank home loans compare with other options.
Your estimated mortgage repayments
at interest rate 2.64%
Total interest payable
Total loan repayments
Contact a mortgage broker
ubank homeloans are vailable through brokers who can help find the right loan and manage your application at no charge.
ubank top home loans products
UBank customer service
As UBank is an online-only lender, it does not have any branches or mobile lenders. UBank home loan customers can contact the bank via:
- Mobile app (Android, iPhone)
- Online banking
- Live chat
How to apply for a UBank home loan
Customers wanting to apply for a UBank loan can apply by filling out an online application form or by calling the bank.
Before applying for any home loan, think about how much money you can afford borrow given your financial situation and income.
You will also need to provide documentation when applying for a home loan, such as:
- Name and contact details for each borrower.
- Proof of income and employment.
- List of assets, expenses and other debts, including credit cards, personal loans and car loans.
- Property details like the contract of sale.
About UBank home loans
UBank home loans allow loan terms of up to 30 years. Options are available for investors and owner-occupiers, as well as for interest-only or principal and interest repayments. Interest rates may be variable, or can be fixed for one, three or five years.
UBank home loans do not offer an offset account. However, UBank home loans come with a redraw facility, enabling you to make as many extra repayments as you want, as well as fee-free redraws.
UBank also has loyalty discounts available, allowing you to enjoy a lower variable interest rate after you've been with UBank for a few years.
UBank home loans review
UBank is an online-only lender, so before you apply for a home loan with them, you’ll want to be comfortable making your application and managing your mortgage online or over the phone.
UBank’s home loans are available to owner occupiers and investors, with options for principal and interest or interest-only repayments. As well as variable interest rates, it’s possible to fix your interest rate for up to five years.
The interest rates on UBank home loans tend to be lower than those of larger, more traditional banks. As UBank has no branches, it can pass some of its savings on to customers. Owner-occupiers can expect to pay lower interest rates than investors, and those making principal and interest repayments can expect lower rates than those paying interest only.
While UBank customers won’t need to pay upfront or ongoing fees on variable rate home loans, those applying for fixed rate home loans will need to include a rate lock fee in their calculations.
UBank doesn’t offer offset accounts or its home loans, but customers who make extra repayments can enjoy unlimited redraws. Plus, staying with UBank may allow a borrower to enjoy a loyalty discount on their interest rate.
Learn more about home loans
How do you compare home loans?
To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.
Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.
What are the different types of home loan interest rates?
A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan.
Having understood what are home loan rates in general, here are the two types you usually have with a home loan:
These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.
With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.
Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?
No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.
However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.
Do you compare mortgages using the comparison or advertised rate?
A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.
However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.
A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.
Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.
When does Commonwealth Bank charge an early exit fee?
When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.
The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:
- If you switch your loan from fixed interest to variable rate
- When you apply for a top-up home loan
- If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
- When you prepay the entire outstanding loan balance before the end of the fixed interest duration.
The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.
When do mortgage payments start after settlement?
Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.
Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.
Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.
Does UBank offer home loan pre-approvals?
If you’re applying for a home loan with UBank, you can first get an approval in principle. You’ll need to provide information about your job and earnings, your household expenses, the assets you own and the debts you owe.
UBank will assign a home loan specialist to discuss these details over a phone call, which can take about 30 minutes.
The bank will then confirm if you’ve received in-principle approval for your home loan. Depending on how you submit your documents, this could take a few days or a few weeks. If successful, the approval will be valid for 60 days.
What are the features of home loans for expats from Westpac?
If you’re an Australian citizen living and working abroad, you can borrow to buy a property in Australia. With a Westpac non-resident home loan, you can borrow up to 80 per cent of the property value to purchase a property whilst living overseas. The minimum loan amount for these loans is $25,000, with a maximum loan term of 30 years.
The interest rates and other fees for Westpac non-resident home loans are the same as regular home loans offered to borrowers living in Australia. You’ll have to submit proof of income, six-month bank statements, an employment letter, and your last two payslips. You may also be required to submit a copy of your passport and visa that shows you’re allowed to live and work abroad.
What is a home loan?
A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.
Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.
The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.
Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.
How do you find cheap home loans?
With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.
Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.
One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.
What is a mortgage rate?
The interest rate on a home loan is sometimes called the mortgage rate. This percentage indicates how much interest the lender will charge you with each home loan repayment. Your interest rate is effectively the “cost” of “buying” the money you’re using to buy a property – the higher your mortgage rate, the more your home loan repayments may cost.
Using a home loan calculator, you can estimate how much your home loan repayments may cost, based on your mortgage rate, loan term, and loan amount. This may also be affected by whether you’re making principal and interest repayments or interest-only repayments, if you have a fixed rate or variable rate mortgage, and any fees and other charges that may apply.
How do I apply for a home improvement loan?
When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying.
Besides taking out a home improvement loan, you could also:
- Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement. Speak with your lender or a mortgage broker about accessing your equity.
- Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
- Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
- Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.
If a mortgage rate changes, will it affect your repayments?
If you have a variable rate home loan, changes to your mortgage rate may affect the cost of your repayments. Rising interest rate could cost you more in interest charges, while interest rate cuts could see you paying less interest on your home loan.
If you have a fixed rate home loan, your interest charges will stay the same during the fixed interest period, regardless of whether the lender’s variable rates rise or fall. Once the fixed rate term expires, your loan will revert to a variable rate, so be prepared in case of bill shock.
What is 'principal and interest'?
‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.
By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.
What happens to my home loan when interest rates rise?
If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.
When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.
There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.