UBank is an online bank which is backed by NAB - one of Australia’s big four banks. Having launched in 2008, UBank has since expanded its offerings from term deposits to home loans. As a direct bank, UBank doesn’t have a branch network but borrowers can seek assistance online or over the phone from 8am-8pm Monday-Friday and 8am-6pm Saturday & Sunday (AEST).
If you love the convenience of online banking and feel comfortable with managing your loan online, UBank is definitely a home loan provider worthy of your attention. You might also be happy to hear that UBank received the major 2020 Mozo Experts Choice Award for Home Lender bank of the Year, as well as awards in four separate categories including: Low Cost Home Loan, Split Home Loan, Fixed Rate Home Loan and Investor Fixed Home Loan.
Rates and fees verified as correct at 05 June, 2020. Other information correct at the time of writing.
With a fixed home loan from UBank you can get repayment certainty for 1, 3 or 5 years on loans starting from $100,000 (up to a maximum of $2,000,000). There are no application or ongoing fees but you may be charged a different fixed rate depending on the purpose of your loan (i.e. home ownership vs investment) and whether you choose a principal and interest or interest only payment option. You have the option to make extra repayments during the fixed term of your loan (up to a maximum of $20,000) but you won’t have the flexibility of a redraw facility should you need to free up funds later. There is also a rate lock feature available where you can secure the advertised interest rate up until the settlement of the loan if you’re losing sleep over possible interest rate rises in the future (fees apply).
| Product | Fixed 3 year rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ | |
|---|---|---|---|---|---|---|
| 2.44% p.a. | 3.30% p.a. | $0.00 | $395 | Go to site | ||
| 2.59% p.a. | 3.34% p.a. | $0.00 | $395 | Go to site | ||
| 2.44% p.a. | 2.94% p.a. | $0.00 | $395 | Go to site | ||
| 2.29% p.a. | 2.90% p.a. | $0.00 | $395 | Go to site | ||
| p.a. | n/a | $0.00 | $395 | Go to site |
UBank offers a great range of variable home loans to choose from depending on whether you’re an owner occupier or an investor and if you prefer principal and interest or interest only payments. UBank’s variable rates are available on loans starting from $100,000 (up to a maximum of $2,000,000) and you can borrow up to 80% of your property’s value. You won’t have to pay any application or ongoing monthly fees to access the full range of features including extra repayment flexibility, a redraw facility if you’re ahead of your scheduled repayments (minimum $1,000) and the choice between weekly, fortnightly or monthly repayments. Plus if you’ve held this loan for 3 years or your fixed rate has expired, you may be eligible for UBank’s loyalty rate discount (conditions apply).
| Product | Rate | Comparison Rate* | Service fee | Upfront fee | Monthly repayments ‡ | |
|---|---|---|---|---|---|---|
| 3.66% p.a.variable for 36 months and then 3.56% p.a. | 3.59% p.a. | $0.00 | $0 | |||
| 3.46% p.a.variable for 36 months and then 3.36% p.a. | 3.39% p.a. | $0.00 | $0 | |||
| 3.17% p.a.variable for 36 months and then 3.07% p.a. | 3.10% p.a. | $0.00 | $0 | |||
| 2.59% p.a. | 2.59% p.a. | $0.00 | $0 | Go to site | ||
| 2.74% p.a. | 2.74% p.a. | $0.00 | $0 | Go to site | ||
| 3.44% p.a. | 3.44% p.a. | $0.00 | $0 | |||
| 2.99% p.a. | 2.99% p.a. | $0.00 | $0 | |||
| 3.13% p.a. | 3.13% p.a. | $0.00 | $0 |
‡ Results from this calculation are estimates only as individual lenders apply different formulas. Actual repayments will depend on your individual circumstances and interest rate changes.
| Manage your home loanManage your home loan | Choosing a home loan with UBank means you can manage your home loan from the comfort of your own couch or bed or anywhere really. In case you’re not comfortable using a provider without a physical branch, head on over to our comparison tool and choose a provider with an extensive branch network. |
| No application and ongoing feesNo application and ongoing fees | As a direct bank, UBank has passed on its cost savings to customers through no application or ongoing fees on any of its fixed or variable home loans. |
| Loyalty discountLoyalty discount | You may be eligible for a loyalty rate discount once you’ve held UBank’s standard variable loan for 3 consecutive years or following the expiry of the fixed rate term (conditions apply). |
| Rate lockRate lock | When you sign up to UBank’s fixed rate you can use the optional rate lock feature as an added guarantee that you will be charged the advertised interest rate even if there is a rate rise before the loan settles. Be mindful you will be charged a fee to use this feature. |
Feeling a bit edgy about choosing an online lender? Find out here how real UBank customers rated their provider on everything from price and features to customer service and convenience.
When I had a mortgage, they had by far the best rate for a mortgage without an offset account (wasn't an investment property so didn't need it). None of the other banks could come close. Also got Aussie call centres so they provided great customer...
When I had a mortgage, they had by far the best rate for a mortgage without an offset account (wasn't an investment property so didn't need it). None of the other banks could come close. Also got Aussie call centres so they provided great customer service. Can't really fault them besides not having an offset account.
Andrew, New South Wales, reviewed 23 days ago
I like this bank because their rates are very low. A con is they take a long time 2-3 business days to return emails.
I like this bank because their rates are very low. A con is they take a long time 2-3 business days to return emails.
Craig, Queensland, reviewed 4 months ago
Good rate, no bells and whistles.
Good rate, no bells and whistles.
Tanya, Victoria, reviewed 4 months ago
They have a good interest rate and no exit fees. Customer service are reasonable if you are complaint enough.
They have a good interest rate and no exit fees. Customer service are reasonable if you are complaint enough.
Trevor, New South Wales, reviewed 6 months ago
I like this bank because it is a part of NAB and because it is a no frills bank, meaning you get a much cheaper rate and no monthly fees. However, because of this there is no shop front to walk into. Everything is done online and it can take a...
I like this bank because it is a part of NAB and because it is a no frills bank, meaning you get a much cheaper rate and no monthly fees. However, because of this there is no shop front to walk into. Everything is done online and it can take a little longer to get a hold of then your mainstream banks. This is a sacrifice I am willing to accept for better value and reducing the cost of what is the most expensive thing you will pay for in your life, that being your home loan. The only con to this is they do not have, as yet, an offset account that can be attached to your home loan. To counteract it they do have unlimited redraw facility with no fees. This means you do have to keep a closer eye on how much you are redrawing if you are putting in your saving to not eat into the principal you are paying off the mortgage.
Alyssa, Queensland, reviewed 6 months ago
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To apply for a UBank home loan, you will need to complete and submit an online application. In order to finalise your home loan application, you’ll need to supply the following documents:
