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UBank UHomeLoan from 3.69% p.a (CR 3.69%), Owner-Occupier Loans $200K - $700K, Refinance and Get $1000 into a USaver Account

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UBank UHomeLoan from 3.69% p.a (CR 3.69%), Owner-Occupier Loans $200K - $700K, Refinance and Get $1000 into a USaver Account
Go to Deal
Psteve08 on 14/04/2018 - 21:53 ubank.com.au (1997 clicks)
Last edited 14/04/2018 - 22:13 by 1 other user

Product Name UBank UHomeLoan Variable Rate - Discounted Rate — borrowing between $200,000 and less than $700,000 (Owner Occupier, P&I)
Interest Rate Type Variable
Interest Rate (p.a.) 3.69%
Comp Rate^ (p.a.) 3.69%
Minimum Loan Amount $200,000
Maximum Loan Amount $700,000
Maximum Loan Term 30 years
Maximum LVR 80%
Maximum Insured LVR 80%
Mortgage Offset Account No
Mortgage 100% Offset No
Loan Redraw Facility Yes
Split Loan Facility Yes
Fixed Interest Option Yes
Loan Portable Yes
Suitable for Investment No
Extra Repayment Yes
Available as equity loan/line of credit No
Repayment Type Principal & Interest

Refinance and get a surprise bonus $1000 into a USaver account

To be eligible for the UBank UHomeLoan, you must:

Currently be earning a Pay As You Go (PAYG) income from an employer (this excludes rent, Centrelink payments, superannuation or family payments as your main source of income).
Never have committed a financial crime or declared bankruptcy.
Be an Australian resident with an Australian residential address.

Referral Links

Referral: random (1250)

Referrer and referee each receive $30 after referee makes 5 settled card purchases within 30 days.

Financial Home Loan Loan

Related Stores

ubank
ubank

closed Comments

  • stinkydog on 14/04/2018 - 22:08
    +1

    Woah this is awesome! Can I +1 even though I can't apply because I'm self employed? Already did.

    • stupot3003 on 15/04/2018 - 06:49
      +2

      ubank wouldn't take my partners wage who works under her abn into acount at all! They onlywant PAYG applicants it seems.

      • endotherm on 15/04/2018 - 18:32
        +4

        These banking criteria can be strange. I'm on a lifetime pension (paid from my super fund), so I have a guaranteed income for life. Yet apparently I'm more "risky" than when I was working earning a wage, and could have been fired the next day. A number of banks and credit unions I tried had a similar view.

        They also wouldn't lend to me because my income payment was too low (they were only interested in my gross income). Their computer programs couldn't handle cases like mine, where I only pay about $1000 tax a year on my pension, but my net take-home pay was actually more than when I was working.

      • centrelink on 16/04/2018 - 10:37
        +1

        Well that sucks. My cousins who works at Safeway can get credit cards but here self employed and earning 6 figures for the last 5 years can't even get a $2000 credit card at cba lol

    • ShortyX on 15/04/2018 - 09:13
      +2

      The $1k is just a bonus… not the main focus of the deal. :)

    • SlickMick on 15/04/2018 - 22:44

      Apparently everyone assumes that is supposed to be sarcasm, but 0.25% discount is a good deal.

      • MrZ on 16/04/2018 - 00:38

        Really, so if you bought something for $100 and got a 25c discount ($99.75) that'd be a bargain right?

        • SlickMick on 16/04/2018 - 16:18

          I'm thinking more on a home loan and saving a whole heap more than that every month for 30 years

        • MrZ on 16/04/2018 - 17:17

          @SlickMick:

          It's only a one time payment of $1000. It's not monthly or annually.

    • Slo20 on 16/04/2018 - 07:05
      +1

      Anyone that keeps the same home loan fo 30 years is a Schmuck anyway

      • Iwantthatbargain on 28/04/2018 - 14:01

        the way house price going down, no doubt everyone will keep same loan for longer

        • scar4ace on 28/04/2018 - 14:13

          Why is that?
          Is that cause new lender does revaluation? If so, is that because the LVR may then exceed 80% so LMI?

        • Slo20 on 28/04/2018 - 15:07

          @scar4ace: no because banks only look after their new customers. They offer better incentives to get in new customers than to retain

        • scar4ace on 28/04/2018 - 18:16
          +1

          @Slo20: oh totally agree. My question was to AG1304x on why falling prices would discourage consumers to look for better finance deals

  • Click_It on 14/04/2018 - 22:13
    +7

    But the $1000 surprise isn't a surprise anymore.

    Good find though.

  • xyron on 14/04/2018 - 22:34
    +24

    Not particularly impressive given no offset account included. Brokers can get as low as 3.64% with macquarie with full offset and a black rewards credit card.

    • dcep on 14/04/2018 - 22:38
      +3

      should share your broker here

      is there min. loan amount for that ?

      • Boltonian on 16/04/2018 - 12:28
        +1

        $150k and LVR (Loan to value ratio) needs to be below 70%. They also have a $363 legal fee and $400 discharge. The rate I can see is 3.69% though

    • steve08 on 14/04/2018 - 22:42

      any fees?

      • xyron on 14/04/2018 - 22:44

        $250 package fee is the main one but there are of course others. the Ubank product isnt fee-free either.

        Most of the big banks are offering rates of 3.6 to 3.7% with low fees if you dont need offset.

        • steve08 on 14/04/2018 - 22:59
          +4

          if you like offset have a look at bank of sydney 3.59 comparison with offset:)

        • flashi007 on 14/04/2018 - 23:07

          @steve08: I asked about bank of sydney in the post about that loan a few days ago. Apparently they underwent a name change. Noone could really tell me why that was a bad thing.

        • DogGunn on 14/04/2018 - 23:10
          +1

          @flashi007: Bank of Sydney is Beirut Hellenic Bank, with much of it's operations still based in Lebanon. Not necessarily a bad thing, but enough to sway some people.

        • dcep on 14/04/2018 - 23:13

          @DogGunn:

          what could go wrong ?

        • flashi007 on 14/04/2018 - 23:15

          @phunkydude: but seriously - what can go wrong?

        • DogGunn on 14/04/2018 - 23:18
          +2

          @flashi007: Well I don't want to make it political, but I'd rather not have my banking data in Lebanon. If you don't mind, go ahead and use that great rate.

        • Snoopy113 on 14/04/2018 - 23:28
          +1

          @flashi007:
          Lets say you take out a loan with them and they go bust. The government will just force one of the big 4 or someone else to buy them out. Your loan then will be with whoever that is and they will likely have the right to change whatever conditions they like on it. You end up on a horrible rate and you just refinance to someone else.

        • flashi007 on 14/04/2018 - 23:35

          @DogGunn: Doggo - thats the reason why I am asking about it - i would like to be educated on the topic (if someone is willing to do so)

        • steve08 on 15/04/2018 - 00:09
          +2

          @flashi007: originally came to Australia as Laiki bank about 20 years ago was taken over by Breuilt Hellenic bank which is 4th largest funded bank in Lebanon, after a couple of years the name didn't resonate with people so they changed it to Bank of Sydney and has been more success with that name. I don't know why people see it as a bad thing either to be honest. Foreign banks like ing citibank, rabo direct, HSBC good for competition. Can't be worse than the big 4 or maquarie the fee factory?? Maybe people don't like beuruit? Worst case they go under your deposit gov gaurnteed

        • Mkr on 15/04/2018 - 08:14
          +4

          @steve08:

          As a customer of Bank of Sydney for over a year, I don’t see any issue with them.
          3.54% with full offset and no package fees, you can’t complain.

          Be realistic guys, there is no issue with the BOS mob. It’s a good product at a great price.

        • ShortyX on 15/04/2018 - 09:16

          @Mkr:

          Some have reported processing delays - https://www.ozbargain.com.au/node/368306

        • ShortyX on 15/04/2018 - 09:47

          xyron - which broker?

        • xyron on 16/04/2018 - 07:53

          @Stix: I don't want to be seen as sockpuppeting but I found my broker on OzBargain. There are a few floating around.

        • FXD on 16/04/2018 - 15:33

          UBank: "No bank fees on variable rate loans. $0 application fee for variable rate, $0 ongoing fees, $0 annual fees."

          What are the fees you are talking about?

      • Boltonian on 16/04/2018 - 12:30

        $150k and LVR (Loan to value ratio) needs to be below 70%. They also have a $363 legal fee and $400 discharge. The rate I can see is 3.69% though

    • DingoBilly on 15/04/2018 - 01:53

      I mean, you can get 3.54% with a full offset via loans.com.au as well? I'd recommend them over others myself.

      • dcep on 15/04/2018 - 01:56

        they're not bank though

        your money in their offset isn't guaranteed when they go down

        • Ryder on 15/04/2018 - 07:35

          remember IF they go under you will be still be owing them money via your loan regardless of how much u have in the offset account.

      • Hirolol on 15/04/2018 - 08:55

        What’s offset account?

        • ShortyX on 15/04/2018 - 09:18
          +5

          A separate account that offsets the loan balance. For example, if you have $50k in an offset account and your loan account is $200k in debt, the interest is calculated on $150k instead of $200k. You can use the offset account like a normal transaction account but some institutions charge an annual fee (normally called a package fee) of about $200-$400 annually.

    • Obtain Finance on 15/04/2018 - 10:00
      +1

      Meh. I'm a mortgage broker and have access to deals with lower rates than this with actual bank branches (not just online/phone). Also keep in mind that many of these deals with no annual fees also don't come with offset which can potentially save you way more than the annual fee in interest expenses.

    • TozBargain on 15/04/2018 - 16:37

      It has redraw, which is essentially the same thing.

      Some banks require you to withdraw a minimum amount ($500), but you can just use what you need and put the rest back into the loan.

      And you usually have to be at lead 1 payment ahead.

      But they're more-or-less the same thing.

      • ely on 15/04/2018 - 17:02

        Agreed, I've got a redraw only mortgage, I just get paid directly into it, put everything on credit cards and redraw monthly to pay off the CC bills. No big deal.

        • Slo20 on 16/04/2018 - 07:10
          +2

          Offset is better if you plan to convert it to an investment property down the track, otherwise it serves the same purpose.

        • ely on 16/04/2018 - 07:46
          -1

          @Slo20: Presumably you'd want to refinance it when converting it to an investment property anyway, otherwise you'd incorrectly have an investment on an owner occupier loan, so there doesn't appear to be any problem there regarding possible future uses of the property. You'd redraw, which is unambiguously personal usage from your OO mortgage, then refinance with an investor loan.

          The whole tax issue with redraws seems a bit retarded (e.g. https://www.smh.com.au/articles/2004/08/13/1092340458713.htm…), it seems like if redraw is considered to be borrowing for private purposes then you'd think using any money in your offset account would be the same as well - but it is what it is, and when you refinance to an investment loan, get one with an offset - unless you have a personal mortgage as well, in which case it really doesn't matter, because you'd put your money against that instead to reduce your non tax deductible interest rather than using the offset to reduce your tax deductible interest!

        • Slo20 on 16/04/2018 - 08:08
          +1

          @ely: even if you refinance the ATO still looks at the lowest value historically of the loan. Otherwise you’d be able to constantly refinance back up to >80%LVR With an offset to increase your tax deductions.

        • ely on 16/04/2018 - 08:12

          @Slo20: It makes sense that they'd do that for an investment loan, but it seems crazy that they would do this including the time when it was clearly a personal loan. The intention of the case study I linked to seems pretty clear, but the ATO is pretty crazy :-/

        • Slo20 on 16/04/2018 - 08:30
          +1

          @ely: I totally agree. I converted my owner occupied to investment loan and did the research for months about it. It’s such a grey area, initially ATO reps and my broker told me the wrong information.

        • dcep on 16/04/2018 - 12:59

          @ely:

          so, as per Slo20 comment , refinance to IP is still a no go right ?

        • ely on 16/04/2018 - 15:25

          @phunkydude: sounds like it, yeah, crazy but I assume true - I'd confirm with your own accountant/adviser, it sounds like one of those things that you definitely want to get right but may be dependant on the exact details of your situation.

    • OldBugger on 15/04/2018 - 23:06

      I envisage the impressive part of the ubank deal is the fact that it includes $1000? Surely it's a nice incentive for those who want to get out of their current loan, get a good rate, but don't want to be behind from the start with paying exit and entry fees.

    • EyyBanane on 16/04/2018 - 06:41

      I was initially planning to switch to UBank, but HSBC offered 3.55 with offset (comparison rate 3.59).

  • sween64 on 14/04/2018 - 23:38
    +1

    UBank is backed by NAB. Online only.

  • fozzie on 14/04/2018 - 23:46
    +2

    We recently refinanced through Mortgage Choice (Menai branch) Phil Wheatley. He secured us a 3.65 loan (80%value of the property) with full offset/redraw facility, with CUA. 0 annual fees. We had to pay some small fees I cannot remember exactly but it wasn’t more than $350. Mortgage Choice don’t charge any fees and Phil is the best , even comes to your home to get papers signed

    • scar4ace on 15/04/2018 - 00:22

      Starting to look into mortgages, when you arrange or negotiate a deal such as this, aren't there more chances you are just being given a sweetener deal, pull you in then increase your rates steeper then if you go with normalised packages that ing/Rams offer online?

      Would you then just find a new deal (refinance?), would some contracts have some clause to prevent you from leaving within certain time? and also with refinance I'm guessing depending on new provider they may have setup/one-time fees to be paid? (But probably offset by the amount saved with lower rates anyway) Total newb question sorry

      • 31mop on 15/04/2018 - 07:20

        We used mortgage choice for all our loans over the years. They've always been brilliant. Never been on any 'sweetener' deals. If anything, the broker we had did everything they could to screw the banks over and get brilliant deals. I couldn't recommend them enough

        • Detonal on 15/04/2018 - 10:02
          +2

          You do understand that the brokers are paid by the banks, right? :)

        • 31mop on 15/04/2018 - 11:50

          @Detonal:

          Yep. Not all of them are arseholes though.

        • fozzie on 15/04/2018 - 11:53
          +1

          @31mop:
          I agree with you! They are savings us $4000 a year with new deal so how are they screwing me over? We were with Anz and when we contacted them could only go down to 3.89 and still annual cost so it was a no brainer moving over to Cua.

        • SlickMick on 15/04/2018 - 23:08

          @fozzie:
          You're comparing with a worse product - of course it would seem good. You have to compare with the best products on the market - that will give you a different impression of your broker.

          A broker will only sell you a product from someone they deal with… presumably the one that pays them the best commission.

          We used a broker once when we were desperate: our lender pulled out when they realised it was a small unit. We went back next time, but found a better deal ourselves. Asked him to beat it, but he couldn't.
          So never used a broker again.

        • fozzie on 16/04/2018 - 09:32

          @SlickMick:
          I have shopped around before changing, the Cua is a slightly better deal than what I could get and I let a local business earn a living. For me is a win win situation.

        • SlickMick on 16/04/2018 - 16:25
          +1

          @fozzie:
          fair enough - if that's the cheapest product for what you need.

        • fozzie on 16/04/2018 - 18:54

          @SlickMick: it was on one of the weekend Daily Telegraph. I need to see if I kept the copy for that.

        • Aulyna on 18/04/2018 - 08:30

          @fozzie:

          Have you found out which product it is?

    • RangaWal on 15/04/2018 - 21:52

      Reckon I can renegotiate my existing CUA variable rate of 4.99% down to 3.65%, or is it only to attract new customers?

      • xyron on 16/04/2018 - 06:21

        If you are paying that kind of rate on a tee guytre at the moment then you need to churn literally ASAP.

        • RangaWal on 16/04/2018 - 06:55

          tee guytre?

        • xyron on 16/04/2018 - 07:51

          @RangaWal: mortgage*! My autocorrect has been a dog lately.

      • fozzie on 16/04/2018 - 09:34

        I read a newspaper article recently where it says that owners occupiers should be paying 3.7 or less. Banks are obliged to offer the same rate to existing customers according to the same article

        • mitchellp on 16/04/2018 - 10:56

          I just spent 30 mins on the phone to ING. they refuse to lower my interest rate to what they offer new customers. This is my second loan with ING and they always increase the rate for existing customers and give more discount to new customers. Refusing to give existing customers the better rate.

        • fozzie on 16/04/2018 - 10:57
          +1

          @mitchellp: that’s awful start shopping around.

        • endotherm on 16/04/2018 - 18:36

          Would be interested in reading that article myself, especially about the obligation to provide the same rate. Where was it?

        • tfb on 19/04/2018 - 21:27

          @mitchellp: ING did the same to me so I moved to Ubank. I was on 3.92 but called today and they reduced it to 3.69 immediately. Only disappointing thing is having to call and ask for the reduction…no rewarding existing customers unless you ask for it.

  • dealmaker on 15/04/2018 - 00:19

    Would anyone know of good or close rate loans (I know I can't get this rate) for SMSF property? Thanks in advance.

  • Ziggy28 on 15/04/2018 - 00:24

    There will surely be a broker who can find you a better deal

  • scar4ace on 15/04/2018 - 00:31
    +4

    So broker better then going direct with ing/rams or some other similar? is it economies of scale - buying power of broker vs indiviudal going to a bank?

    But once broker gets you a deal is it hands off (assume no monthly fees ) from them until you wish to switch mortgage provider if rates increase etc (refinance?) and then you can choose to go to any broker again or another bank direct?

    I always try cut out Middle men as I see them taking a cut which I could save by negotiating directly eg don't use travel agents, book everything online or call up hotels so they reduce Price to offset agent/Middle men commission etc . Not sure why broker so prominent for property

    • SaberX on 15/04/2018 - 12:52
      +1

      A "great" broker should have a suite of lenders and should understand beyond the loan how going with certain banks could influence borrowing down track for people with large investment portfolios. The problem. Ifound in practice you dont know how limited their lender panel is until your already knee deep getting suggestions back and unless you have used them a few times for success you'll nevee know if they placed you with a rigid bank that makes property #2 and #3 harder to borrow for.

    • OldBugger on 15/04/2018 - 13:59
      +1

      But once broker gets you a deal is it hands off

      Pretty much. You don't usually pay a broker anything as they get their commission from the lender. Which is why many brokers don't deal with all banks.

      I started out with a broker to get me on my way and always thought I would swap later on my own, but mine has been excellent in not only providing advice when needed (almost acts like a free financial advisor) but has been able to push the bank to reduce my interest rate when asked to be comparable to a rate I want.

      It is all the same at the end of the day. A broker may be able to get you a rate you want plus do the admin side of it (plus provide advice for free). But of course, if you find the broker can't get you the rate you want, just change broker or go solo.

  • theHMASfriendship on 15/04/2018 - 00:47
    +3

    What is the normal price??

  • atris17 on 15/04/2018 - 00:48
    +5

    DONT DO IT

    There no 100% Offset !!!

  • GuitarNeo on 15/04/2018 - 00:58
    +2

    Understand Offset is good to have- but doesn't redraw on loan do a similar job?

    Very curious as to how both options are so different to each other- Very interested to know.

    • dcep on 15/04/2018 - 01:25
      +2

      redraw is fine as long as you don't plan to turn it into investment property

      • vash12 on 15/04/2018 - 09:22

        Agreed. Offset gives your more flexibility. I.e turning into a investment property.

        Redraw is still ok if you want to keep it simple.
        Depends what you plan to do.

        • OldBugger on 15/04/2018 - 14:45

          I have offset at the moment so my salary goes into the connected transaction account and immediately reduces the loan amount.

          So with redraw you would have your salary go into a separate tx account. You would then throw that in the loan ASAP (or before the month is up)? Then use your credit card for purchases. Can you send money from the loan to the credit card?

        • ely on 15/04/2018 - 17:06

          @OldBugger: Or just get your salary paid directly into the mortgage account, skipping the "transfer ASAP step". I need to redraw to my own account and then pay the CC bills, but that doesn't take long (request redraw early weekday morning, cash is in my account ~4pm that day, bpay gets processed at 6pm so if I'm organised enough it doesn't even take a day longer than if I did it directly) and some lenders may allow more flexibility in how their redraw works.

        • OldBugger on 15/04/2018 - 21:02

          @ely: ah good to know you can do that. I'm guessing with ubank you could redraw to the ubank transaction account. So it would be available immediately. Is your loan and transaction accounts at the same bank?

        • ely on 15/04/2018 - 22:49

          @OldBugger: No, totally different banks, still very fast though. No promises others will be, but you'd think if they were both at the same bank it would be likely to be instant and it shouldn't take any longer than overnight at worst if you request the redraw during the day.

    • madamethrifty on 15/04/2018 - 01:56
      +1

      Offset is an account that you can transact with, allowing you to keep all funds against your loan until the moment bills are paid. Redraw, to my understanding, is usually very manual, allowing redraw into another account but not other external transactions directly. There is often a minimum redraw (eg $500) and a redraw fee associated.

      • Cluster on 15/04/2018 - 03:04
        +1

        UBank has no redraw fees, and the minimum redraw amount is $1k

        • Pandamony on 15/04/2018 - 07:31

          UBank minimum redraw amount is $100.

        • Cluster on 15/04/2018 - 13:45

          @Pandamony: I have a UBank home loan and the minimum redraw is $1000. Their product may have changed in the meantime.

        • Pandamony on 16/04/2018 - 08:44

          @Cluster: I have no issues doing $100 redraws from my UBank home loan.

    • DaveD on 15/04/2018 - 08:20
      +1

      Might sound silly but i personally dont like to see my outstanding mortgage amount go higher(after withdrawal)..and hence offset must for me..

      • Doggiie on 15/04/2018 - 09:17

        But you'd rather see your outstanding mortgage be always higher instead? If the full transactional account is in your mortgage, the mortgage will look significantly lower, than if there is an offset.

        • DaveD on 15/04/2018 - 10:02

          I completely agree, but its just a mental block which i cannot overcome..but by having offset I know I am not going to redrawn from my loan and that gives me some sence of satisfaction..

        • the4thzodiac on 15/04/2018 - 11:34

          @Daved: totes know how you feel David

        • SlickMick on 15/04/2018 - 23:23
          +1

          @Daved:
          I think this is a big advantage for saving. It makes you reconsider every time you take money out - a great budgeting tool :)

        • DaveD on 16/04/2018 - 06:30

          @SlickMick: true that

      • ely on 15/04/2018 - 17:07

        You're right, it does sound silly. Your outstanding mortgage amount is going higher every time you spend money from your offset too…

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