UBank is a direct 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 from a 24/7, Australian based call centre.
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 a 2017 Mozo Experts Choice Award in four seperate categories: Best Low Cost Home Loan, Best Split Home Loan, Best Variable Rate Investor Loan and Best Fixed Rate Investor Loan.
Rates and fees verified as correct at 26 June, 2017. 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 ‡ | |
|---|---|---|---|---|---|---|
| 4.09% p.a. | 4.53% p.a. | $0.00 | $395 | |||
| 3.99% p.a. | 4.15% p.a. | $0.00 | $395 | |||
| 3.99% p.a. | 4.15% p.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 ‡ | |
|---|---|---|---|---|---|---|
| 4.66% p.a. variable for 36 months and then 4.56% p.a. | 4.59% p.a. | $0.00 | $0 | |||
| 4.46% p.a. variable for 36 months and then 4.36% p.a. | 4.39% p.a. | $0.00 | $0 | |||
| 4.17% p.a. variable for 36 months and then 4.07% p.a. | 4.10% p.a. | $0.00 | $0 | |||
| 4.44% p.a. | 4.44% p.a. | $0.00 | $0 | |||
| 4.09% p.a. | 4.09% p.a. | $0.00 | $0 | |||
| 4.13% p.a. | 4.13% p.a. | $0.00 | $0 | |||
| 3.74% p.a. | 3.74% p.a. | $0.00 | $0 | Go to site |
| 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.
* Overall rating based on reviews in the past 12 months.
Very competitive variable rate. Easy to apply online and helpful staff.
Very competitive variable rate. Easy to apply online and helpful staff.
Angie (VIC), reviewed over 1 year ago
I have dealt with Banks and sought approvals for years. I have never experienced an incompetent bank like Ubank ever before. The application process so far has taken 5 months. They keep asking you to upload document after document. They then...
I have dealt with Banks and sought approvals for years. I have never experienced an incompetent bank like Ubank ever before. The application process so far has taken 5 months. They keep asking you to upload document after document. They then question everything you have submitted and are suspicious of you. The call centre staff never know anything and always say they will get someone senior to call you but they never ring. I have substantial assets and had a high income from my job as a lawyer - but they always had an issue with my loan ratio. Even though they told me my expenses were average they were still suspicious about why I dont spend more. I am sick of wasting my time with them and am going to withdraw my application. No bank has ever questioned me as much as Ubank. I wish I never dealt with them.
Paul (SA), reviewed over 1 year ago
Took long time processing application, Cheapest interest rate, can withdraw money from loan
Took long time processing application, Cheapest interest rate, can withdraw money from loan
Silda (QLD), reviewed over 1 year ago
Easy to apply and customer service is always quick and great
Easy to apply and customer service is always quick and great
Mei (NSW), reviewed over 1 year ago
I'm very impressed with Ubank. Searching Online for a better home loan rate, I found Ubank, 4.17%. I applied and processed the loan MYSELF online. I was sent the documents to read and sign. The transfer of loan was efficient and easy, Saving...
I'm very impressed with Ubank. Searching Online for a better home loan rate, I found Ubank, 4.17%. I applied and processed the loan MYSELF online. I was sent the documents to read and sign. The transfer of loan was efficient and easy, Saving myself $400 a month. When people are talking homeloans, I tell them about Ubank.
Deborah (VIC), reviewed over 1 year ago
Mozo may receive a payment from financial providers listed on the site. Customer reviews are in no way affected by any commercial relationships Mozo has with providers. Reviewers may receive a voucher from Mozo in exchange for their review. Vouchers are given to all reviewers who meet our review guidelines regardless of the sentiment of their reviews.
* The Comparison Rate combines the lender's interest rate, fees and charges into a single rate to show the true cost of a home loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years, and applies only to this example. Different amounts and terms will result in different comparison rates. Full comparison rate schedules are available from lenders. Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
‡ 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.
† Mozo may receive a payment from financial providers listed on the site. Customer reviews are in no way affected by any commercial relationships Mozo has with providers.
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:
