UBank Loan Guide

Ubank is an online-only division of National Australia Bank Ltd. Since they’re online-only, they have fewer costs than traditional banks that have to keep branches up and running.

Ubank is an online-only division of National Australia Bank Ltd. Since they’re online-only, they have fewer costs than traditional banks that have to keep branches up and running.

With this benefit, Ubank boasts that it passes its savings onto its customers and borrowers. Their rates are straightforward and competitive, and you’ll know what your rate should be before you even apply for a home loan.


Ubank loans have recently won the following awards:

  • Money Magazine “Best of the Best” 2016 for Cheapest Home Loan Bank
    (won 2013-2016)
  • Mozo Expert’s Choice 2017 for Australia’s Best Online Bank
  • Canstar Outstanding Value 2017 for Investor Variable Home Loan, Investor Fixed Home Loan, and Owner Occupied Variable Home Loan

Ubank was founded in 2007 as an online-only option for those who want some of the best rates they can find. Since Ubank didn’t have to pay to maintain and staff branches, they spent extra money making their rates affordable and training their support staff to provide the best assistance to their customers.

As a division of National Australia Bank, Ubank sought to work independently to appeal to the new borrowers through their phone and online platforms.

By 2009 NAB had already determined that Ubank’s strategy was a success. As of 2015, the bank held over $15 billion in deposits and $3.6 billion in mortgages.

Ubank offers standard home loans. You can choose between fixed and variable-rate loans, and each provides a discount for those who are taking out a loan through Ubank for the first time.

The following options are the available options for home loans through Ubank:

  • Variable Rate (Principal and Interest)
  • Variable (Interest-Only)
  • Fixed Rate (Principal and Interest & Interest-Only)

As you can see, you can choose between variable and fixed rate, as well as principal and interest and interest-only.

If you want to refinance your loan through Ubank, you’ll receive a $1,000 deposit into your Ubank account, along with access to the features listed below.

It’s also noteworthy that Ubank does not offer any offset account features on variable rate or fixed rate loans.

Ubank offers multiple features that apply to some or all of their loans. Certain options, such as the loyalty discount, only apply to specific types of Ubank mortgages.

No Ongoing Fees

Ubank doesn’t charge borrowers any annual fees for borrowing from them. There are also no application fees for variable-rate loans.

The only fee you’ll have to pay through Ubank is for a fixed-rate loan. This payment is a one-off application fee that protects against rate changes that occur before you settle.

Loyalty Discounts

Ubank offers a few different rate discounts through their loan plans, but if you don’t qualify for any of them, you’ll be able to receive the loyalty discount from Ubank.

The loyalty discount comes after the fixed-rate period of the loan expires or after you’ve held the loan for three consecutive years – whichever happens last. You will receive a 0.10% loyalty discount.


Ubank gives borrowers flexible repayment options that best fit their schedule. You can decide whether to pay weekly, fortnightly, or monthly. This feature is available on both variable and fixed-rate home loans.

There is also a convenient online application tracker on your loan application through Ubank.

Local Support Staff

If you have a question, problem with your loan, or need help deciding which loan is best for you, Ubank has helpful support staff available to take your calls and questions.

There is also a list of helpful articles and forum posts to help you through the lending process. Chat with one of Ubank’s local agents by calling 13 30 80.

Ahead is an in-depth look at the four different types of loans Ubank offers borrowers.

Principal and Interest Variable Rate

The variable rate for principal and interest loan option calculates your rate depending on how much you borrow. As of this writing, the discount on your annual loan interest breaks down as follows:

  • Less than $200,000: A discount of 0.43% per year
  • $200,000 – $700,000: A discount of 0.48% per year
  • More than $700,000: A discount of 0.55% per year

Receiving these discounts means you won’t be eligible for the 0.10% loyalty discount listed above.

On variable-rate loans, you’ll have access to unlimited additional repayment, 0 fees, and redraw facilities.

Interest-Only Variable Rate

Ubank also offers a discounted rate for variable interest-only loans. As of this time, you’ll receive 0.33% off of your new loan (any amount), with the same features as the principal and interest variable loans.

Like the discounted rates for principal and interest loans, you won’t be able to collect the 0.10% loyalty discount with the interest-only variable loan.

Fixed Rate (Principal and Interest & Interest-Only)

You can choose a fixed-rate loan for one year, three years, or five years. This will affect the rate you receive, but you will be eligible to receive the 0.10% loyalty discount through Ubank.

This discount kicks-in after three years or whenever the fixed-rate period ends – whichever happens last. If you have a five-year fixed-rate loan, for instance, you will have to wait until the five-year period ends before you start receiving your discount.

Once your fixed-rate is over, you will transfer to the standard variable-rate loan.

Ubank’s online application portal walks you through the application process. Simply visit their website and open the application section, fill out the information as directed, and submit your application.

You can track your application throughout the process. Once an advisor reviews the application, they’ll give you a call to confirm that you are eligible for a home loan.

After you talk to a representative, you can upload the appropriate documentation for further review. Once Ubank reviews everything and approves your loan, they’ll send you the Contract Pack for you to read and sign.

Redraw facilities allow borrowers to take out some of the money they’ve used for extra repayments on their loans. Ubank offers redraw facilities, but only in a limited fashion.

Redraw facilities are only available through variable rate loans. They discourage borrowers from making extra repayments of fixed-rate loans, though you can wait until the fixed period ends before paying extra on your home loan.

Ubank allows borrowers with variable rate loans to make unlimited extra repayments, which means you can withdraw these funds at any time. As we covered, this feature is not available on fixed-rate loans.

You can make extra repayments on any of your loans through Ubank. Their variable rate loans allow you to make unlimited repayments, and there is no added fee for paying off your loan early.

If you have a fixed-rate loan, the parameters on extra repayments are a bit more restrictive. You can make extra repayments, but you won’t have access to any redraw facilities during the fixed window so any extra repayments you make will be gone.

For this reason, it’s especially necessary that you accurately budget your payments when making extra repayments on a fixed rate loan through Ubank.

Additionally, there will be a break cost if you repay your loan before the fixed rate period ends. This cost includes extra repayments so it might not be cost-effective to make extra repayments on a fixed rate loan from Ubank.

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