Ubank vs Unloan: these Big Four offshoots face-off

By Jasmine Gearie · · 3 min read
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Update: 4 November, 2025

Unloan cut its variable rates by 0.05% p.a. for owner occupiers and investors, and did so a week before the Reserve Bank decided to keep the cash rate on hold at its November meeting.

Unloan says its latest rate cut is only available to new customers – different from its earlier approach this year where it passed on any rate drops to new and existing borrowers.

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Key points

  • Ubank and Unloan are two online-only home loan providers that are backed by major Australian banks – Ubank is operated by NAB and Unloan is built by CommBank.
  • Unloan only offers a variable rate home loan, but the interest rate is generally lower than Ubank.
  • Ubank offers fixed and variable home loans, with options to include offset accounts.

If you’re looking for a home loan that offers a low rate while still having the familiarity of a Big Four bank, Ubank and Unloan are two options to consider. These two online-only providers have similar big bank heritage, with Ubank falling under NAB’s umbrella, while Unloan is owned by the Commonwealth Bank.

Both Ubank and Unloan offer competitive rates compared to their Big Four counterparts, and because these digital banks spend less on overheads, there’s a good opportunity for you to save money on your mortgage.

Unloan has an award to back this up too – it won in the Low Cost Home Loan category in this year’s Mozo Experts Choice Awards for Home Loans.

To help you see the key differences and similarities between the two, we’ve compared the low rate variable loans from these providers: the Unloan Variable Home Loan vs Ubank Neat Home Loan.

Unloan Ubank
Home loan Unloan Variable Home Loan Ubank Neat Home Loan
Variable interest rate 5.19% p.a. (when borrowing up to 80%) 5.44% p.a. (when borrowing up to 80%)
Comparison rate* 5.10% p.a. 5.46% p.a.
Loan-to-value ratio (LVR) Up to 90% LVR for new buyers
Up to 80% LVR for refinancing		 Up to 90% LVR for new buyers
Up to 85% LVR for refinancing
Offset account No No
Extra repayments Yes, free and unlimited extra repayments Yes, free and unlimited extra repayments
Redraw facility Yes, free to redraw Yes, free to redraw
Loyalty discount Yes, 0.01% p.a. discount off your interest rate every year for up to 30 years No
Application process Online-only Online-only
Fees and charges $0 upfront fees

$0 ongoing fees

$0 discharge fees

Lenders mortgage insurance (LMI), government charges and third party fees may apply		 $250 upfront fees

$0 ongoing fees

$300 discharge fee

Lenders mortgage insurance (LMI), government charges and third party fees may apply
*WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

  • Unloan Variable Home Loan

    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.19 % p.a.
    Variable
    Comparison rate
    5.10 % p.a.
    Go to site
    • The first home loan with an automatic loyalty discount (conditions apply)
    • No application or banking fees
    • Built by CommBank

  • Neat Home Loan

    • Owner occupier
    • Principal & Interest
    • 20-30% deposit
    • Redraw available
    Interest rate
    5.44 % p.a.
    Variable
    Comparison rate
    5.46 % p.a.
    No Partner link
Compare more home loans

What else to know

We’ve covered the benefits and drawbacks of Unloan and Ubank’s variable rate home loan, but there’s other points to keep in mind:

  • Ubank offers a wider range of home loans: you can choose its basic variable home loan, a variable with an offset account, or opt for a fixed rate.
  • Unloan only offers a variable rate: Unloan doesn’t offer fixed rate home loans, and there’s no option to add an offset account.
  • Ubank’s rates are tied to LVR: Ubank’s interest rates change depending on your loan-to-value ratio, meaning the less you need to borrow, the lower your rate will be.
  • Unloan has a loyalty discount: those with up to 80% LVR get the same rate, but Unloan does offer a 0.01% p.a. discount for each year of your mortgage (up to 30 years).
  • Ubank offers savings accounts: Ubank offers a banking account that lets you separate your cash into spend, bills and save accounts, giving you more control over your money, and a chance to earn high interest.

What other criteria do these home loans have?

Unloan’s Variable Home Loan and Ubank’s Neat Home Loan are available to owner occupiers and investors, as well as those buying property or refinancing their mortgage.

You can apply with Unloan if you’re self-employed, though conditions are attached and additional supporting paperwork is required.

On the other hand, you’re only eligible for a Ubank home loan if your employment is permanent, casual or contract – those who are self-employed can’t apply.

Neither provides loans for construction purposes, and Unloan doesn’t allow you to use its loan for buying off the plan. Ubank specifies you can’t buy off the plan properties with more than three months left before settlement.

Next steps?

If you want to keep comparing your options, you can take a look at some of the best home loans in our database to see if you can get a lower rate or find the extra features you’re looking for.

Editor’s note: the information in this article is correct as at 4 November, 2025.

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

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