Post rate cut, Ubank is passing full rate cut 0.25% to existing as well as new customers. so new rates are starting from 2.84%. Do not that there is no offset account but redraw only. no application or ongoing fees and lending criteria is bit softer than Athena and TicToc.
I was rejected by both Athena and Tictoc but Ubank did not make fuss about my credit score (which is 700+ without any blemish).
https://www.ubank.com.au/newsfeed/articles/2019/09/ubank-rba…
Rates effective from 29th Oct.
Referrer and referee each receive $10 after referee makes 5 settled card purchases within 30 days.
It seems like the amount you'd like to borrow doesn't leave you with enough left over each month after your expenses and home loan repayments.
Based on the expenses and income you have provided we are unable to offer you this loan.
I’m with NAB for home loan about 226k. Is it worth while me switching over to UBank? The current variable rate is at 4.05.
My variable rate with NAB is 3.35%, how come you are on 4.05%???
Good question. Going to ask them tomorrow.
4.05 is a ridiculous figure, i gotta say.
I was on 4.07 and they lowered to 3.30. The operator actually tried to playoff that 4.07 is a low rate already lol
How did you get it lowered?
I am with UBank. And wdnt recommend them at all.
Have fixed and variable loan. Wanted to break fixed loan and asked for break cost. They simply absurdly said some amount. Which was appx. 2.5 times the expected one. When I asked about explanation, they refused citing sensitive info. What I wanted was to strip off any sensitive info and provide me generic info like one time charge or upfront fees. Not the entire calculation. They wdnt bother.
Have put this against banking ombudsmen. Awaiting their feedback.
They would look nice as a new customer. Wdnt be a happy experience as existing customer. And while they are part of big4, they are not Big 4 in terms of Royal Commissions and remediations. Just a cautionary note.
What was your calculation of expected one?
I expected to be around $2800 to $3500 (based on 3 independent sources or sites) and was quoted about $7900 appx from UBank.
Yeah I agree beware. We had the same experience with Ubank after selling our house with one year to go on a 3-year fixed - mind you this was about 5 years ago. They were so cagey about how they calculated it, and way more than what I tried to calculate. From memory it was going to cost nearly $5k, and after many exasperating calls I managed to negotiate a lower break fee. However, I have only had to do this once and I'm sure other banks could be similar.
In terms of fixed rate, it's pretty much a hassle everywhere when you want to break or change anything, not just uBank.
Yeah, it’s a hassle. But do they be charging any amount? Sure, to some level secrecy is fine. But not when something feels dodgy. That’s y I have gone to ombudsmen.
My current lender will be charging me $1800 when i take my home loan to Ubank.My fixed rate period will finish on 10/2020.
@pyramid: When you break any fixed rate the bank will charge you the interest they are going to loose by you breaking your agreement. Some people break their fixed rate and go to a bank which offers a rebate for new customers that way they arent out of pocket too much.
@Belfast123: True that. but going from 3.69% to 2.84% will give me enough benefits to knock off those fixed rate break fees.
so whats the method u used to calculate? i really would like to know thanks.
d - Difference between the % interest rate. Say your fixed rate of 3.5 % than the bank currently offering say 3 %. So 0.5% be the difference.
t - Remaining tenure.
l - Remaining loan amount.
Calculated based on these values.
Amount = (ld/t)100
Add some fix govt charges.
In just shell, it’s the same amount you would pay to them if you were with the bank for it’s entire fixed tenure.
Edit: this can be handy
https://www.homeloanexperts.com.au/fixed-rate-loans/break-co…
thanks Op…Love Ubank
waiting till 80% LVR and then I am going to these boyzzz
Does anyone if you can get the same rate on like a 27 year loan?
they do 30yrs only as far as i know….
yeah not worth refinancing if I have to pay another 3 years interest on top
If you borrow the same amount as you currently owe and make the same repayments you will pay it off in less than 27 years? You don't pay interest if you pay off the mortgage early.
Confirmed: They only cater for 30-year term home loans, no flexibility there.
If I'm going to be a first home buyer aiming for stamp duty free, willing to live in for 6month up to a year and later turn into an investment (loan 75-80%) without having any debts or credits
a) Shall I take advantage of first home super saver scheme introduced from ATO?
b) Is it better to have an offset acc?
c) Variable vs fixed?
d) Is this UBank deal a good fit for me?
e) Any other advise?
Take full advantage of any concessions/ schemes you are applicable for. An offset will benefit you. Go variable, don’t go fixed. UBank accepts new purchases. Buy with 20%, don’t pay LMI.
Hi Etrxnox,
Good questions but it all depends on the individual.
1.) always try and take advantage of the super saver scheme if it suits your needs
2.) an offset account is a good thing to have and you can normally link a daily transactional account to your loan but if you dont have one its not a disaster as there are other options
3.) fixed v variable - again depends on the individual - if you like to budget your payments and dont mind staying with the bank for a few years then fix if you get a rate you are happy with (you can also get an offset with some banks) Variable gives you the option to make extra repayments and you ride the rate if there are any rate decreases or increases in the future - plus the exit costs for variable are differ between $250-350 depending on the bank.
4.) Read the Ubank website and if the product suits you go for it but dont be afraid of contacting them and asking them questions if your still not sure :) its a big commitment and you want to be sure what you decide on you are happy with
5.) If you have any other questions just PM me i would be happy to answer any questions you have :)
Thanks
Thank you for the details and I'll review your comments carefully.
I'll PM you for questions
I'm with ubank (variable) and very happy.
Pros: low interest rate
Cons:
Online facility and app sucks!
Redraws are not instant even if you have a ubank transaction account.
Redraws have to be processed before 10am to receive the funds on the same day.
Funds deposited can only be viewed after one business day! Eg if my salary comes in on Friday, I can only see it on Monday morning (date will be Friday of course).
However, low interest rates outweigh all of this!
is 2.84% a honeymoon rate or is this ongoing and unlikely to be jacked?
It's not a honeymoon rate
Is anyone with homestar? Very good rates and no ongoing fees. I was thinking to refinance with them. Any feedback?
I believe they have application and valuation fees. Ubank covers these for you.
I thought the calculator on the UBank web site was somewhat restricted because you cannot change the home loan term from 30 years. Having just spoken with them, it's not a web site restriction but the bank itself. They only offer home loans for 30 years. That's me out!
Why are you out? If they give you one for 30 years and your current tenor is shorter you effectively have more time to pay off the loan (at no extra cost to you) which means if you ever hit hard times, your minimum repayments would be much lower as opposed to say, if you were on a 20 year loan.
There are a lot of pro ubank comments here. Perhaps ubank are having another good run?? But current good rates (this is okay but not best) is no indication that they'll be good next month…
I refinanced to ubank when they were cheapest (some years ago). Shortly afterwards there were not even close to the cheapest. I tried to negotiate my rate but they wouldn't budge, so I refinanced to Homestar. (I got a phone call later offering a deal that still wasn't as good as homestar. Too little too late.)
More recently I didn't even notice ubank when purchasing a new property, so I presume it's only very recently that they've become nearly competitive again?
None of these cheap lenders are reliable. I refinanced from Ubank to Homestar, then from Homestar to loans.com.au. But loans.com.au is currently 3.03%, or 3.27% with an offset. Homestar is the current leader (or was last year when I bought a property), currently 2.74% or 2.79% with an offset account - and will be .25% less from 28th October.
None of these cheap lenders are reliable
What are you finding unreliable? The rate jacking? how often and quickly does it happen?
I have a free full bells and whistles home loan from a big 4 bank which currently charges 3.5% (and I guess soon to be a bit less with the rate cut on Tuesday) I'd like to change to a cheaper rate, but since my home loan is free with full offset, redraw, etc etc. I'd hate to move somewhere 50bps or more cheaper, but then they jack the rate 6 months down the line.
They aren't reliably the cheapest. With the ubank incident I referred to, there were suddenly no where near competitive.
Homestar has fluctuated too - I probably should have just stuck with them for decades, but for a while there were others offering better deals.
Yeah, so that's exactly what I'm saying. You could refinance, but may well soon find that your old provider wasn't so bad, and will almost definitely find that you could have done better than whoever you do choose.
I'd look at the costs of the refinance (and factor in the inconvenience), then double it to cater for repeating the process when you see you could have done better, and see if the interest you'll save outways the cost.
I've noticed uBank does not have an "exit fee" but does not mention "discharge fee" (payable to the Gov on release the mortgage). Not sure these fee terms are interchangeable?
man they really dont want my business that badly,
applied online, got a phonecall soon after, was out and about, requested he offered a callback after 4PM which i accepted, havent heard anything from them in the last week.
on the phone with them now, on hold 10 minutes and i suspect it will be much longer still before i get hold of someone and remind them of the application.
It's hard to check the offset calculation, especially if you link a transaction account to your loan account. With a redraw, it seems easier to check if the interest charged is right. Just a bit of conspiracy theory, or may be because I lost my truth with the banks?