Hi has anyone had any dealings with U- Bank? Good or bad? Im thinking about refinancing my home loan with them for their online rate of 3.74%.
UBank are an online bank and an 100% owned subsidiary of National Australia Bank.
They do offer excellent rates as their model is online however I would assume they would have a call centre that could help you through the loan process, 3.74% is a good rate.
It does mean that you have to ask the right questions so that you understand all the features of the loan, their fees and make sure the loan suits your short and long term needs. For example, you need to ask is the rate a honeymoon rate for 3 – 6 months and if so what will be the rate after the honeymoon period finishes. Also it would pay to check if it is it a principal and interest loan option only, are there any monthly fees, does the loan have redraw and offset facilities and can you revert to a fixed or part fixed loan without additional charges – there are other questions you could ask and it is always advisable to seek a 2nd opinion to compare loans and suitability.
I can’t comment on what they are like to deal with but as they are owned by NAB, one would hope they will offer a service that reflects industry standards.
I hope this helps, best wishes
Di. Good morning. I am a Broker and therefore not able to deal with U Bank. However, what I know of them, they are extremely "do it yourself" (no call centre).
I have financed a number of people that have started the U Bank process and then sought more professional service.
What I do know is this.
1) they do not have a call centre of any great value
2) they will only lend a maximum of 80% of the security value
3) they do not allow multiple properties as security, a real issue if you wanted to use the equity later to obtain an investment property
I recommend you read the blogs on their site to help make your decision.
I note that I am reasonably local to you and would be happy to offer any services.
Hello Di, It really depends on your objectives from your property purchase. Cheapest rates might not be the best product and best products in the market might not have the cheapest rates. So if your objective is to have a property investment portfolio in the future its best to form a good relationship with a big bank. To answer your question I have not heard anything bad about Ubank as long as customers are happy with a restricted banking option. Cheers Harish Saluja
I don't offer loans with U bank but I do know it is an online lender and the loan would be very basic with no frills.
If you do decide to go with them purely based on rate think about the following:
Do you want:
an offset account
a credit card
Ability to make extra repayments
Ability to redraw
Staff members to talk to / customer service
Rate isn't always the deciding factor of a loan depending on your expectations.