Rates on hold but market still awash with home loan bargains
The RBA has this afternoon announced that rates will remain on hold for the moment but banks are continuing to offer low interest rate deals for ideal borrowers with big deposits.
Interest rate structure
Fixed - 5 years
$100k - $2m
Principal & interest
Loan term range
1 - 30 years
Allows split interest
ACT, NSW, NT, QLD, SA, TAS, VIC, WA
Estimated upfront fees
Minimum SMSF Amount
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 a day customer support. UBank is an online-only lender which is backed by NAB.
WHO IS IT FOR?
UBank products are suitable for full-time employees who have a good deposit saved and are looking to buy (or refinance) an established property.
Since UBank is an online bank, most of the interaction with them is electronic. Therefore, you should be comfortable with completing your application and sending through your documentation using online means, rather than visiting a branch. The fact that UBank is a branch-free bank means their overheads are lower, and that rolls down to their products. If avoiding fees and getting the best rate is your highest priority (rather than product features and face to face service) then UBank is a lender worth considering.
UBank Value Offer
Enjoy a homeloan with $0 application fee, $0 ongoing fees and redraw facilities available. Min. 20% deposit required.
Here are a few key questions some of our users have asked with respect to UBank. If you want to know more, you can read our expert review or contact UBank directly.
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 24 hours a day by calling the customer support hotline (1300 822 630) or by using Skype.
Although UBank offers the perks of a small lender, it is backed by one of the largest lenders in the home loan market, National Australia Bank (NAB).
UBank home loans allow loan terms of up to 30 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!
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.