Refinance and enjoy a $500 Coles Group & Myer gift card.
Simply apply online by 28th of Feb, select 'yes' when asked if you're already with UBank, and receive your gift card on settlement.
Seems like a pretty decent deal given there low rate and no fee's. This rate includes a 0.20%p.a. Loyalty Discount for the life of the loan.
Referrer and referee each receive $20 after referee makes 5 settled card purchases within 30 days.
This is the bit of the T & C's which refers to being an existing customer. It doesn't say you need to be a customer for x many days etc..
The $500 gift card offer is only available to existing UBank customers. Customers of UBank Term
Deposits and USaver accounts, including UBank Self Managed Super Funds, are eligible for this
offer. The $500 gift card is non transferable, refundable or redeemable for cash.To qualify for the $500 gift card the applicant must be an existing UBank customer at the time
they submit their online application for a UHomeLoan.
Soooooo apply for a ubank term saver or an onlin saveer account, and then apply for the uhomeloan?
geez NAB are buggers, they have homeside too which are about .25% higher & have fees
I was considering this company to refinance my home loan with my I didn't move to them for one very good reason. And that is because the lack of ability to change the number of repayment years. I have 20 years remaining and wanted to keep it at 20 years, the loans will not allow anything other than 30 years.
Using their repayment calculator it allows you to choose the years, and I can't see that you need to choose 30 years, I would imagine they would not get many customers if that was the case. You do, however need to borrow min $150K to get the good rate.
Edit: oh and NO offset is a bad thing… :(
Yes, I liked their offer too until I noticed the lack of offset. Pretty much rules it out for me until they have an offset account available.
what benefit is an offset compared to an account with free redraws?
There is no real difference, however I know with my CBA accounts, its an overnight transfer into the loan for deposit and withdrawal… don't know if thats standard. So if you are dropping in more substantial ammounts of money, it can mean more than a week of saved interest just in that overnight alone.
Plus for banks that allow offsets, you are able to have more than one offset, which means you can manage your finances better, while keeping money away from the loan.
Lastly, you can have your income paid into the offset (provided you earn more than $500 per pay cycle :p). You cannot have your income paid directly onto the loan (depending on what bank you use)
If you want to pay your loan down quicker, just having your everyday money in an offset until you need it, using a credit card and only paying it off before incurring interest on there will serve to assist in saving thousands off the end term for your loan.
"There is no real difference…"
valid points, though how much higher are the fees/interest rates associated with a loan with such features…
if they are higher then any benefits could be neglected
You don't need an offset account if there is a redraw facility. You can make additional payments and redraw the funds when you need them. It may take about a few business days to come through though. Similar to an offset account, the extra money you put in offsets the interest on your loan.
If you have a few hundred to a few thousand lying around in a savings account that you may or may not spend, you are reducing your balance by the amount you have there every day.
Free redraw with UBank only works if you withdraw 1K or more.
Offset can work very favourably in your home loan depending on your spending habits. You can also make the extra repayments (i.e put your whole wages into the home loan) and just use a good credit card with interest free periods as an alternative 'offset'
but if you had those few hundred or thousand in an account like the usaver then the difference between offsetting the mortgage v's earning interest would be reduced considerably…
the difference is only 0.13% between the savings and loan rates, so apart from paying tax on the interest, the difference would only be large if you had a fair heap in the 'offset' account
If the interest is calculated daily, and there are no restrictions for how long you need to keep it in the savings account it would be fair to say it would be negligible difference then.
It's only over 30 years, I have called them. Yes you can pay extra of course but I don't want to have to recalculate and notify after every rate change.
Like any home loan, as long as you meet the minimum payment amount, it is in your own best interests to pay as much as you can possibly afford, regardless of the rate increases/decreases. Everyone is different though.
I can see the way they get you. You pay min amounts on a 30 Year loan, with some extra top up payments that you calculate as your own 25 year amount, then decide to re-draw and go on a holiday or buy a car, then end up paying tens of thousands more in interest on that purchase over 30 years if you don't factor it in.
THAT my ozbargain friends is the catch.
But if you are careful and disciplined, this product would potentially save you quite a lot of money due to its low rate and no fees, or if you you have the ability to pump the loan with big repayments no matter what the min payment says.
cant you just pay extra? hence the whole "variable" rate?
Isn't Ubank let you repay as much & as often as you want without any fee. If so, I can imagine you just pay off quickly & finish off your loan.
I maybe wrong though.
Correct, you can ring up and ask them to make the repayments x amount so it will pay off in 20 years.
+1
You have to sign up for 30 years with ubank and its up to you then if you want to calculate your own repayments and pay it off in 20 years. This means every time interest rates change you need to recalculate the repayment and call them to change your repayment as you can't make additional payments or alter your repayments online.
I usually 'push' my money into a loan from my salary or bank account, giving me the flexibility to adjust as required.
Do ubank require you to set-up a direct debit arrangement, or do they allow you transfers into a loan account?
(If nobody knows I'll ring them)
Easy… do your own calculations and pay extra into your account to make the loan pay off in 20 years instead of 30
Yeah you can just pay extra. The 30 years is irrelevant and simply sets the minimum repayment due each month. You could pay it off in 1 month if you like
I haven't checked the link (will do when I get home), but I believe it has no redraw facility, unless its changed since.
With redraw and no limit on extra payments, I would take this
It has redraw and no limit on extra payments.
The only catch is the redraw minimum is $1000 and at the moment you need to phone up to get the redraw. The online banking for home loans is very basic, merely a statement. If you wanted less than the $1000 you could make an additional payment but it is a bit of a PITA since you would have to phone it through again.
Considering that nab only dropped their SVR by 45 basis points in the past 2 RBA rate cuts totalling 50 basis points, my question is did UBank not pass on the full rate cut too?
They did the same as NAB, still the cheapest home loan in Australia if infochoice.com.au has it right.
Dont get too carried away with websites that compare rates.
All major banks give a discount of some sort most of the times .75% (or more). So think about that when comparing majors with other institutions. This is not considered in comparison websites.
Just do ur sums.
Yes and the worst customer service….
Have you walked into a NAB branch & actually tried to get something done? (after waiting 20-30min to get served they'll tell you to call the call centre…another wait and get told to visit the branch…..)
no offset account is a huge negative
Totally!
There is a redraw balance available to redraw with a minimum of $1k each time. That's the closest thing to having an offset account. This is a compromise to have a low variable rate in comparison to a fully featured home loan. It's like you choose to fly with a budget or full service airline.
You don't need an offset account if there is a redraw facility. You can make additional payments and redraw the funds when you need them. It may take about a few business days to come through. Similar to an offset account, the extra money you put in offsets the interest on your loan.
If investment property, an offset acct is helpful as I believe technically you can't pay more and then withdraw whenever you want in the ATOs opinion
and here I am with my bank loan getting finalised yesterday ;)
I applied last month but haven't settled. Curious if they'll give me the $500.
Us too, I'm about to call and find out.
lets see how you go…
Geez, after a 40 min hold, guy didn't know, then said maybe, then said someone will call me back tomorrow. I said what if I cancel, open up a saver account and reapply. He said give it a shot. Funny man. Seems like a hassle, but we wanna go shopping goddamit!
I don't get it… if I am already an existing customer, why would I be refinancing a loan through them? Is this only for people that have multiple loans??
I'm thinking it's to get the customers they have with savings accounts to bring their mortgage over.
Their savings accounts have good rates.
Its basically to make people open a savings account and get a home loan at the same time.
Everything done now. Just waiting on settlement date and my $500 voucher card!
You might even get the $500 eftpos card, that would be better.
What's the $500 eftpos card??
Makes no difference to me. I know exactly where and when the Coles Myer voucher will be spent.
yawn, still waiting on settlement. Apparently it's today.
Settlement happened on 13th of last month, still waiting on my loan id and $500 Coles Myer voucher.
Finally the Coles Myer voucher came.
So basically you apply for uBank saver account then you can get this?
I tell people about uBank's low rate and people still want to stay with their current overpriced bank…..