I believe this is the new low rate you can find. Some may not happy with their recent saving account interest rate cut. However, loaners might find it useful.
4.18% p.a.
3-year fixed rate
4.46% p.a.
Comparison 3-year rate
UBank 3-Year Fixed Rate Home Loan at 4.18 % p.a.
390
Neoika on 24/02/2015 - 20:01 ubank.com.au (1425 clicks)
Last edited 25/02/2015 - 02:01 by 1 other user
Last edited 25/02/2015 - 02:01 by 1 other user
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You are right.I share this info only.Actually,I do not use their homeloan atm.
why arent they the best lender? best rate = best lender, no?
No, lending policies, cashout policies, LMI cost, etc all come into it.
For me personally, they wouldn't be good, as I don't think they'd lend any money to me (property investor).So cheapest car = best car? Cheapest mobile phone network = best mobile phone network? Cheapest TV = best TV?
Does your car give you money to buy a house?
Does your mobile phone give you money to buy a house?
Does your TV phone give you money to buy a house?@pmupsinep: Homeloan give you money and you are paying them back. Thats the only purpose - no need to be a brand-sl*t on a homeloan.
@superbass: There's more to a mortgage than the interest rate. Clearly you don't understand any of this, hence your original comment.
The troll must be hungry. Here is a pancake recipe for you.
Ingredients
1 cup (150g) self-raising flour
1 tbsp white sugar
1 egg, lightly beaten
3/4 cup (180ml) milkMethod
In a bowl, combine flour and sugar.Whisk in the egg and then milk at little at a time until batter is smooth and lump-free.
In a frying pan or flat grill, over medium heat, brush butter over cooking surface and pour 1/4 cup measures for each pancake.
When large bubbles form on the surface, flip over and cook until lightly golden on the other side.
@pmupsinep: No it is obvious that I don't but you clearly haven't articulate it either. Comments from spludgey are constructive, but comments like yours are just arrogant
@superbass: I was attempting to demonstrate how ridiculous your logic was. I now accept that it's a fruitless exercise. Please carry on.
Haha … moo's comment with the pancake is funny … got a + vote from me for that. But on the other side superbass is absolutely right (the cheapest (considering interest + all fees) homeloan is usually the best one when you compare it from a pure financial side. )
There are other options to consider such as lending policies, reputation of bank, customer service … but usually when you meet the criteria of the bank the cheapest homeloan is the one to select. (but you can opt to pay more for better customer service if you want and can get a benefit out of it). Banks try to make the loans non comparable but in the end it's the cost of the loan which counts.
Other products such as cars, mobile phone networks have far more variables to consider and are not that easy comparable as a homeloan. A cheaper homeloan directly equates to more available money for other great deals (for example buy more eneloops) in my opinion.
It's hard to bring this message across (hehe … I might fail too and get some negative votes … but people who get the concept will save a lot of money)
@superbass:
Does your homeloan bring you to where you want to go?
Does your mobile phone bring you to where you want to go?
Does your TV bring you to where you want to go?
No, only your car does.Does your homeloan let you call your friends?
Does your car let you call your friends?
Does your TV let you call your friends?
No, only your mobile phone does.Does your homeloan let you watch your favourite shows?
Does your car let you watch your favourite shows?
Does your mobile phone let you watch your favourite shows?
No, only your TV does.@moo:
I'd recommend replacing the milk with buttermilk. It makes really fluffy pancakes! Perfect for trolls!
All I want to say is 'LOL'. Why on earth would we consider customer service, customer retention/loyalty program, benefits, fees etc. when you have the best rate! Clearly you know something we don't. :)
All I want to say is 'LOL' too. Not sure why you would need customer loyalty program what you mean by "benefits". Seriously, you get money from bank and you pay them back on monthly and fortnightly basis. thats it man
Can't see anything about an offset account either, and if its exists, if it offsets 100%. Would be pretty handy
@mparf:
I think one of the downside of ubank is they don't offer an offset account(don't quote me). Wish they did tho. I wouldve been all over it.@roiboi123:
Ubank will tell you that it is the same thing.
You might think that it is the same thing.
ATO will tell you that it is not the same thing.
Savvy investors will tell you that it is not the same thing.So, is it the same thing?
Not having read their offer in great detail, and offering only the general thoughts of someone looking to buy in the coming weeks, a few things to look out for are: monthly fees/annual fees, limits on additional repayments, redraw facilities, ability to have an/multiple offset accounts, ability to split the loan (part fixed, part variable), and there's the usual ancillary benefits a traditional bank/lender can provide, like low rate credit cards, discounts on insurance/other products, etc.
Depending on your individual circumstances, some of these things can actually mean lowest rate != best lender, but everyone's circumstances are unique!
I am working in the sector as well so I can tell…
Actually best rate != best lender as you need to check also if there is any hidden cost as well and also calculated based on the loan size
The total costing is principle + interest + other cost (application cost, annual fee, other fees…e.t.c)
Also, most of the lender fix rate after expire will be extremely high (Standard Variable Rate) so you will need to refinance again after 3 years and it have some costing as well…
Last but not least, all other policies need to be considered…Sometimes it's a marketing campaign to attract the client but super hard restricted assessment & processing delay will make you headache~
Just be aware before going in direct :)
SO are you saying that ubanks application cost, annual fee and other costs are higher and they are actually ripping people off?
@argamond: NOT saying that it's ripping people off, just want to let everyone know how smaller lender will attract people initially then Rocket the rate sky high….So just beware of those hidden cost (as I really can't find it on their website interface) and also the after fixed period rate/charges.
Such a simple way to look at it. Totally depends on what your circumstances are and what you want your mortgage to do. For me, no offset and fixed rate means it's not the best loan for me.
What are some of the negatives people have with ubank? Looking at refinancing is all.
Is all what?
I'm very, very happy with our Ubank Home Loan. Would highly recommend them if you fit their criteria.
I believe the are looking for full time employed applicants that have held their current loan for a minimum of 6 months and…going from memory, something like 20 or 30 % equity in the home they are looking at refinancing (based on their low property valuation that is..).
The initial paperwork was a bit of filling out. But there were no hidden costs. No monthly account keeping fees. Can redraw easily online. Only catch is it takes 24-48 hours to hit your bank account.
I tried to list any negatives for you, but that's all that I can think of. I wouldn't hesitate to go with thim again :-)
if anything like loans.com.au, forget any normal bank services. Linked credit card? no. International money xfer? no, decent online banking? no. phone app? no.
While you may not use these all that often, it does become a bit of a pain in the arse to be honest. I still don't regret going with mine, but just be aware.
Wow, the Australian economy is screwed if money is being given away at 4.18%.
Stock the beer fridge for the recession party later this year.There's talk of a further rate cut later in the year(there are a lot of other factors that could change this of course).
Which is why this deal isn't really that great, as while the rate is low it's fixed for 3 years, and no one has any real idea yet of when rates will go back up. You may find yourself being able ot get a better rate significantly before the end of the 3 years.
BOQ are doing 4.24 as a promo atm (not sure how much you need to borrow to get that rate, might be a lower limit) and .06 isn't worth getting stuck in fixed for in the currently climate
Still only for refinancing?
Can you redraw on funds with a fixed rate loan?
Thanks ..that's me out…
You also often can't overpay, so if you are prudent and want to pay more off your loan because you are doing a great job saving, too bad.
If your loan settled after 28 September 2013, you can make up to $20,000 in additional repayments during the fixed term.
4.18% p.a. 3-year fixed rate
4.64% p.a. Comparison rateTheir regular unfixed rate is 4.29% (from 25th Feb)
Been with them since mid last year.
Been great.
ALWAYS get an Aussie when I ring too.When I left my current provider they said they've heard bad stories on customer service.
I have no frills loan, free re-draw, lowest rate.
You don't need customer service once up and running.Must have 20% capital up front though, not 10% that some people accept
For those in the property investment, is offset account necessary? If not, Ubank may offer a good value and I might consider them, if not maybe loans.com.au ?
Any thoughts?
Offset account is necessary for me. I have large amount of savings and the offset means I am paying off the loan atleast 7 years ahead of schedule.
If you don't have any savings then offset isn't neccessary but if you can get offset account for same rate I'd always select offsetwhat is the advantage of an offset over just putting the extra cash on top of the loan - which u can redraw anytime u want and it reduces the interest u pay?
I'm in the same position and deciding about whether to go with a basic homeloan or to pick one with a offset. From what I've noticed so far in my chats with the big banks so far, you won't really be able to get much discounts if you go for a no fee/low cost basic homeloan.
But if you go for a homeloan with a package, than the banks are more accommodating. But nowhere near as good as the fixed rate that's being offered above.
Ubank are constantly voted the cheapest rate or one of the cheapest (variable at least) - with no negotiating - so im struggling to see the point of the off-set or package loans - but im far from an expert … there must be some advantage, otherwise they wouldn't exist
In simple terms it reduces the amount you can Negative Gear if you pay down the loan. An offset avoids this issue.
thanks for making it simple… :) - so therefore only really relevant for an investment property, and assuming you have paid off the house you live in.. (otherwise you would put the cash on that loan)
@lickjimmy1:
can be relevant if you decide to move out of your house after paying some of it off. If you "paid it off" via your offset account you can "redraw" the money and still claim a deduction on the full value of the loan. If you pay it directly off the loan without an offset account and then redraw you cannot tax deduct that part of the loan.Absolutely pay nondeductible debt first.
If there's any chance you may want to keep your PPOR as an IP, get an Offset.
@Steptoe: You never know what will happen in say 3 years. Offset account gives you the flexibility of being able to withdraw fund from your current property to purchase a new home to live in and yet be able to claim tax deduction on it if you rent the old property out. With redraw account, the interest is not tax deductable. It's the purpose of the fund rather than the source of the fund that matters from ATO point of view.
The use of extra cash:
1. Repay & reduce non-deductable debt in the order of interest rate
(credit card, personal loan, car loan, etc)
2. Put into offset account of PPOR loan
3. Put into offset account of IP loan
4. Repay & reduce PPOR loan
5. Repay & reduce IP loanAssess your situation from 1, if it is not applicable, then go to next.
Avoid 4 & 5 if possible.
I think 4.46% comparison rate needs to be added to the title. 4.18% is false and misleading
How so? It is 4.18% for 3 years fixed.
If you look at the comparison rates, it may not be as good as other offerings e.g. loans.com.au 3 years fixed at 4.29% (4.29% comparison rate).
comparison rate uses a 25 year period, so that means after the 3 years fixed it is assumed you will be on their standard variable rate for the remainder of the 25 years.
don't use the comparison rate for a fixed rate period.
I agree with @affable. Government is trying to push down the interest rate so that rather than you put the money as a deposit, they want you to spend it. Hence, lower rates are coming across real soon
I don't know how good this deal is. This morning on the ABC they were saying the RBA could still cut rates. Also no offset account :/
I'm with ME bank and they reduced my rate
INTEREST RATE ALTERED From 5.180% (V) to 4.930% (V)Not as good as Ubank but I have offset account
Nab on $400k at 80% LVR about 4.58% add about 0.1% more to factor in the breakfree cost
Cba $950k at 80% lvr. 4.44% + $400 annual package fee. Offset available.
Nab $1m+ at 80% LVR 4.38% plus the breakfee package waived if asked every year.
edit: couple of others;
bankwest $760k 4.44%
bankwest $1.3m+ 4.38%
Homeside $1m+ 4.43%
ingdirect $1m+ 4.38%
nab $1m+ 4.38%@thydzik: So you've managed to get NAB to waive the package fee every year? Has anyone gotten theirs waived with CommBank every year as well?
yes, but depends on the branch really.
If in WA I can PM the NAB branch I use.
edit: only been with them for 3 years though.
@thydzik: Nah, I'm in Brisbane. I'm with CBA, I'll go around to different branches but I suspect they all have to ask their superiors who is most likely the same guy.
My lender says he can waive the following year's package fee if your money's sitting in the offset account for a number of months until settlement (e.g. apartment still under construction).
Rate cut coming next week. Dont lock it in.
ditto
Thanks for the heads up Glenn. Great to see you taking advantage of Oz bargains too.
Just cos the variable rate drops more or less with the RBA's cash rate doesn't automatically mean the fixed rate on mortgages will follow. Fixed rate is usually more dependant on cost of money internationally. Variable rate is much more attuned to the RBA's rate.
So how does this compare with the peoplecare 3.75% homeloan deal with all the extras like offset & redraw?
Is it just because they're not as cool/well known as UBank, or because of the health insurance hoops to jump through that makes it not any good?
I have a 1 yr fixed rate expiring very soon and 3.75% looks very tempting to go through the pain and hassle of switching (convincing the wife we should move away from her love of Suncorp is a massive task)… but what's the catch? Why not as popular as this and other 4.x% deals that are just plain sad compared to a years worth of 3.75%?
Hey guys, just shopping around to see if I can get a better deal on my home loan. My current situation is:
Variable (current rate 4.69%) portion $96k
3 year fixed (current rate 4.88%) portion $195k (rate ends in Jan 2017)LVR is no problem (property worth about $550k)
Exit fees are $350 for each plus $3835 to break my fixed rate loan.Maths isn’t my strong point, so what rate would I require to make it worth my while to change providers?
Happy to go with no-frills options, although offset a/c is required.
Much appreciated. Thanks for your help all.
Not necessarily the best lender, but if it fits what you need, it's a great rate!