About to Refinance Mortgage. Ubank Vs NAB/Suncorp. Is There Anything I Haven't Considered

LGoogleFroogle on 12/02/2015 - 23:17

I am about to refinance away from CBA's woeful rates and package fees.

I am torn between an "online" offering like Ubank Vs a package from NAB or Suncorp. Luckily I am probably in a position to pay my loan off within 2-6 years depending on a few variables at my end.

The obvious Ubank advantages;
- a cheaper rate (by ~0.2% from the best)

Ubank disadvantage
- less service (I am fairly self-sufficient and online capable)
- Money may spend time in transit to pay credit card, bills, and not working against interest??? I don't know how smooth all of this will be for getting money in and out (out would seem easier than in).

VS

NAB/Suncorp;
- packaged with decent credit cards/transactional accounts (though NAB will make me pay for that after year 1 is free). Suncorp is free package for life.
- rates aren't much worse…but over time matter.
- If I go NAB for now and get $1000 back, I guess I can go to Ubank later if I don't manage to pay my loan off within 2-4 years.
- branches and humans near my work

Given the short period plus the $1000 cashback offer, I think it boils down to NAB Vs Ubank.

Am I missing anything of importance in the comparison? I would love to hear some opinions. Thanks!

Financial

Related Stores

ubank
ubank

Comments

  • Devils Advocate on 13/02/2015 - 00:12
    +1

    You may have already thought of this (you mentioned transaction accounts), do they all offer offset accounts?

    • GoogleFroogle on 13/02/2015 - 14:15

      Thanks. They offer free redraw but no offset.

  • geek001 on 13/02/2015 - 00:15

    I am currently also shopping around for a new mortgage, because my bank won't lower my rate. What I have found is that I also need to factor in the costs of refinancing. Over here in Brisbane, if I change provider, there's about $300 worth of government fees and $300 discharge fees from my current bank.

    • nathanhornblower on 13/02/2015 - 00:22
      -1

      Hey geek001 I just replied to GoogleFroogle.

      I've just sent you a private message as well.

      Looking forward to speaking with you in private.

      • sagrules on 13/02/2015 - 11:53

        I am having the same issues with my provider, once i factor in the costs the discharge fees etc. the % change doesnt make it worthwhile to move.

  • nathanhornblower on 13/02/2015 - 00:17

    Ubank doesn't offer offset accounts.

    Hey GoogleFroogle I work in the NAB myself as a Mortgage Specialist based in the Melbourne HQ in Docklands. More than happy to assist you with your refinance. I tried msging you privately but you seem to have blocked private convos.

    Any way I can contact you privately?

  • MrHyde on 13/02/2015 - 07:18

    An offset account is extremely good to make the best of money lying around.

    Personally, I have loans with both Ubank and NAB and had moved away from Suncorp. I've got an offset account with NAB which I get my income into so that there is no waste of money in transit. Ubank were extremely good to work with - the process was quick, smooth and customer service was the best of any bank I've ever dealt with.

    However, NAB did over to match the rates with Ubank when I was talking to them about re-financing my NAB loans. I didn't take them up on it as I was happy with Ubank and there 0 fees for life and not having to talk to people since they are online. So, it could be worthwhile talking to a Mortgage specialist at NAB to see if they are willing to negotiate.

  • DS2k on 13/02/2015 - 07:35
    +1

    Can't believe how familiar OP's question sounds. I was in the same boat in Dec 14. CBA wasn't playing hard ball just with me, there are others out there.
    Well, I decided and have gone with NAB. The deal I got is:
    1. Annual package fees waived, (So Premium CC, 100% offset account)
    2. 4.60% variable interest rate this is before the recent 0.25% decrease.
    3. A bank that I can deal with (withdraw, deposit) any where in AUS.
    4. $1000 cashback and 40,000 Qantas points with NAB CC (Well, they currently running offer of $0 annual fees for first year anyway with premium CC).

    My recommendation will be NAB. But if you can get a good deal with others there is no harm in exploring and remember Banks want and actively compete for your "Money".

    • tomleonhart on 13/02/2015 - 08:35

      1. Annual package fees waived, (So Premium CC, 100% offset account). Waived for the life of the loan ?

    • trungtily on 13/02/2015 - 11:49

      I'm currently with NAB for my two home loans with more than $1mil +

      I has the Choice Package ($395 annual fee, 1st year waived only) and it charges me 4.66% interest (will be 4.41% after Feb 20th after the rate cut).
      same question: Is it your annual package fee waived for loan life ?
      and (if you don't mind) how do you get 4.60% ? I tried to negotiate with my banker but she only can make to 4.66%

    • GoogleFroogle on 23/02/2015 - 01:29

      I am keen to know how to get quite that offer. I am 90% done with the ubank process…but still need to sign so would go NAB if I could get a crazy good deal

      • DS2k on 23/02/2015 - 07:03
        +1

        Sorry for late reply guys, have to confirm with the bank about the offer. I went to NAB with the Suncorp bank advertsiement of 0 Annual fees for life and an interest rate of about 4.68% per annum. They were able to beat it last November.
        The annual Package fees waiver will be on yearly basis as their system doesn't allow "for life" waiver, but I have it in writing from the Bank.

        Hope that help, someone else out there.

        • GoogleFroogle on 23/02/2015 - 13:23

          Thanks for the reply, DS. I might just go and ask NAB today on my way to close my commbank credit card if they can just do a little bit better than the first offer they gave.

  • tomleonhart on 13/02/2015 - 08:50
    +1

    Broker here.

    I don' think you're comparing Apple with Apple here. Ubank does not offer an offset account and if offset is a requirement of yours then Ubank is out of the question.

    If you go with NAB and get that $1000 cash back then that $1000 should cover you for your refinance cost down the track should you want to move to another bank.

    Based purely on what you wrote NAB seems like a better deal.

  • shweky on 13/02/2015 - 11:47

    Have you considered CUA's freshstart?

    4.65% (4.66% comparison because of the small setup fees) no ongoing fees, free offset account, and its about to drop to 4.43% from 24.2.15

  • jmak on 13/02/2015 - 12:03

    Just interested to know with NAB variable rate of 5.88% at present, how did you manage to get 4.60%? At what level of discount and loan size is that for?
    FYI, Bank of Melbourne giving out $1250 for refinancing.

  • Olga on 13/02/2015 - 15:01

    I transferred from CBA to Ubank a few years back. And the problem is it can be a slow process setting up the loan due to the fact of loading the requested docs, then they want more or different doc, which can be slow and drags on.
    There is no setoff account, but they do have redraw facility, which you can use for any extra payments you have made….
    Last year I topped up my loan for renovations, and again the system of loading up requested documentation is slow, as you have to check the system regularly to see if they have requested any new docs, and there is no way to communicate with the person updating your loan application online, you have to phone in and tell who ever answers the whole story from the start……
    But once the loan is set up, it all runs smoothly…..

  • nathanhornblower on 19/02/2015 - 22:15

    Sorry to bring up this old post from a week ago.

    I've had a good handful of people private messaging me to see what I can offer them (I work for NAB).

    Been a good week as well, as I've spoken to all of them.

    If anyone currently has a mortgage outside of NAB, or even a mortgage with NAB, I'm more than happy to see how I can save you some money.

    (Bear in mind if you have a mortgage with NAB's brokerage arm Homeside I will be unable to help as I represent NAB only).

    Bear in mind NAB's SVR will drop by 0.25% from tomorrow (Feb 20) to 5.63% so if you're on any packages your rates will drop the same as well.

    However that's just the advertised rate and if you don't ask, you won't get it.

    Thanks!

    • gibspmuh on 23/02/2015 - 17:39

      So are you in a position to compete against loans.com.au? Currently they have 4.27% rate for a loan with an offset account.
      I've been with them for a few years now and I've been happy with them, but as you say - if you don't ask, you won't get it. :

  • anna10 on 23/02/2015 - 16:16

    Did anyone find out about Member's Equity, iff so, what were the salient points that them?

    AFAIK, they offer off-set and good rates.

    • Geewhizz on 24/02/2015 - 07:34

      The current Suncorp offer would save us around $1000 a year compare to what we're paying with ME.

      You could TRY getting them to waive the annual fee.

  • Jster on 24/02/2015 - 18:44

    4.44% with Suncorp as from 27/2/15 after discount. We switched to them from ANZ late last year. 1.3% discount for the life of the loan, 100% offset and no package fees ever. I really like that we have our own loan manager at a physical bank so I can go and tear him a new one if I'm not happy about something. No valuation fee too so you really only have to pay the government taxes (few hundred dollars) and that's it. If you can get the same deal with NAB, I would go with them just for their ATM network, but just check for any hidden fees though. Oh, and it sounds like you are going to be paying off the loan quite quickly so the 100% offset will be invaluable to you, it will slash your interest payments and may help you with tax implications if you end up renting the place out in future. P.S. All banks are bastards so just make sure you get the best deal you can, loyalty is a thing of the past. P.S.S. Many will tell you they have a really low rate but don't tell you they have a loan of 2 Million dollars or whatever. Good luck!

Login or Join to leave a comment
Login Join