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UBank Home Loan 3 Year Fixed Rate 1.75% (2.22% CR)

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UBank Home Loan 3 Year Fixed Rate 1.75% (2.22% CR). Comparison rate is based on a secured loan of $150,000 over the term of 25 years.

Owner-occupier P&I loan.

Apply by 26 February 2021 and settle within 90 days of applying.

Note: A fee of $395 applies on a fixed rate home loan to lock in the advertised rate (as at the date of your application) for a period of time. This fee is waived for fixed rate loans that settle on or between 10 July 2020 and 31 March 2021.

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        • +2

          The difference between the two types of accounts comes down to how the tax department use them. Applies to investment loans

        • Also look at the ME Bank debacle in may where redraws were reduced to 0. Offset is your money, redraw is provided at bank discretion.

        • Offset account, you can withdraw money straight away and the bank cant stop you from withdrawing cash. If the bank goes belly up, then you will get your money back and your loan amount with be sold to another bank

          Redrawal can days to get the money out and it often needs to be in the loan account for 30 days before it can be withdrawn on. The bank also has the right to decline your request to withdraw. If the bank goes belly up, your total outstanding balance is sold to a other bank and the extra money in your loan can't be withdrawn without getting refinancing

      • +1

        Centrelink asset assessment include funds in offset account but not redraw.

      • Can you explain that government guarentee thing? Is that just if the bank fails you would lose your money?

      • Is the money in redraw covered under ADI's, this was on the website

        Why is UBank not on the approved Authorised Deposit Taking Institutions (ADI) list?
        UBank is a division of National Australia Bank and operates under NAB's banking license (AFSL 230686).

        NAB is an authorised deposit-taking institution (ADIs) incorporated in Australia and therefore is covered by the Government guarantee. And UBank is automatically covered under NAB's license.

        Thanks

  • Thanks for sharing. I am in the process of transferring investment loans across at the previous advertised rate of 2.29, which I thought was already good. Now I see that the investor loan rate has dropped as well. Hopefully not too late for me to lock in at this lower rate, wish me luck

  • +2

    How is UBANK for releasing equity to invest?

  • Refinanced with UBank a few years ago. The full process from initial enquiry to settlement took about 6-month! I’d hate to see what their timeframes r at now

    • They won’t win much work if it takes them six months to do a refinance. Mine is going through now, 10 days to get the approval, will let you know how long to settle

    • +2

      I did it about 18months ago it took me like 2 weeks

  • Also check out the likes of Athena. I refinanced to them from NAB, very easy process. No regrets. Ongoing referral too $250 each time. May not suit everyone but worth checking out IMHO.

  • No issues with fixed but leave yourself a big enough variable split to allow yourself to make additional repayments. Best bet is to consider your savings capacity over the fixed term and use that as a guide as to how much you have as a variable component.

    Offset loans aren't just used to reduce interest, they also allow you to retain as much debt against the property, should it be an investment property (now or in future) and you use that money for some other purpose. For example, buy a new PPoR you can transfer everything in offset to the new property and still have a larger deductible loan on the old property, should it be converted into an IP. If you paid the old loan down and redrew for a new PPoR you couldn't claim a deduction for any of the redrawn amount.

  • Hi Guys, how good this compared to TicTok? Seems TicTok has a better rate?

    • +1

      tic:toc has 1.99% 3 year fixed, how is that better?

  • +1

    personally looking at homestar finance to avoid any further refinances in the near future, just set and forget at 1.88% 2 years fixed then it reverts to 2.14% until i hit 60% LVR when it goes to 1.79%. can't find anything much lower than those 3 rates

  • Broker has suggested Bankwest split loan of 2 year fixed at 2.07% and then variable at 2.55% with 100% offset for up to 9 accounts (min 20% deposit) but with an ongoing annual fee of 395$. Ubank has few fees but limited flexibility with the loan.

    • Would not ING'S split loan be a better option? They waive the fixed rate fee when you split and the variable rate is 2.54 with 100% offset for 299 annual

    • +1

      Don't do it, you will have to pay double the exit fees and I wouldn't be surprised if that's a fee $395 for each loan.

      I did this a few years ago thinking this would be good and too hedge my bets, boy was I wrong

      • Was it with Bankwest? What do you mean about double the exit fees and $395 for each loan? Can't find a lot online from people who have gone down this route… probably a reason for that but the 100% offset is an attractive feature.

        • +1

          Having a mortgage with fixed and a mortgage with variable, equals 2 mortgages, which means double the fees.

          They may waive one package fee when you get the mortgages like they did with me. I paid one package fee, but when I left I had to pay double fees for everything because there were two mortgages.

          Just go fixed. Also I think when you go fixed with an offset the offset is only like 40c in the dollar, not $1 for $1 like a variable offset.

  • In the last 3 years, my variable rate has gone down from 4.30% to 2.82%. Don't think that trend will continue, so this is a good offer.

  • It seems they force you to lock in the rate with the fee $395 (waived if …). Does it mean if the interest rate gets lower again, I won't get that new rate before the settlement day? Usually rate lock is an optional feature.

    • +1

      They said that the rate lock guards against an increase in the interest rate, and if the rate gets lower, borrowers can receive this benefit too.

  • Im curious to know as I have no idea about banking and investing, but I have a house worth about $750k, with about $450k owing. I have about $50k in an offset, should I be trying for an investment house? I'm a single parent that doesn't have much left over each pay, but living comfortably. Or should i just leave it in the offset and live life this way?

    • Hard question it depends on your age, your risk appetite, and what location your thinking.

      In my opinion houses are long term investment, you need to surf the ups and downs. If you are 55 years old and the market drops short term do you really want all your savings locked up for your retirement because you don't want to make a loss? Also regional areas are booming now but I think this is short lived.

      If I was you having 50k in an offset at 2% savings is pretty pointless. Depending on your age I would be looking more towards shares, it provides flexibility and you can sell at any time instantly. I think given you are a single parent this provides some level of protection.

      • +1

        If I was you having 50k in an offset at 2% savings is pretty pointless.

        Except that every thing else has a risk attached. Plus depending on income 2% is actually 3% as you don't have to pay any tax on the 'income' of an offset account.

    • I like what you are doing. You have some money sitting around for a rainy day

  • Hopefully this puts more pressure on the big 4 to lower rates. 

    • ubank is a subsidy bank of nab

  • Should I stick with my mortgate broker or refinance by myself ?

    • +1

      Brokers don’t offer ubank as they don’t pay commissions.

      I think it’s much simpler dealing with the bank directly unless you have lending issues

    • I refinanced with UBank. Took about a month, and apart from some small hassles in UBank worker's abilities to read basic documents, the whole process went quite smoothly. I've saved many thousands of dollars compared to staying with the CBA construction loan.

      UBank doesn't do construction loans, so my suggestion is going to a normal bank for a loan and then refinancing with a much better online offer as soon as you can.

  • What percentage fixed/variable are people choosing? Im thinking 50/50?

    • I did 90/10.

      • Does Ubank offer spilt? thank you

  • Also if we are refinancing, how much are the exit fees generally Thanks

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