Uhome Loan

No Self Employed people so I have no interest in them otherwise I would have been interested. They were on 7's Today Tonight a few minutes ago.
 
My tip is they will get smashed and then their system will explode. It will be a shamozile. You can't replace professionals with a computer. Many lenders have tried the online processing of loans only to give up.
 
Max LVR of 80% which could be restrictive to many.

No mention of fees for redraw, settlement fees, legal fees or valuation fees so this needs to be investigated.
Can't compare servicing models as brokers don't have access to theirs. This may have an effect on borrowing capacity.

It'll be interesting to see how long this NAB offshoot lasts. Homepath & ANZ Direct didn't last but the rates remained low from my recollection.
I'd assume they are run on a shoestring budget so most resources would be put into gaining new business not retaining/servicing it. I guess with the no DEF (you still have settlement fee I bet and discharge rego of mortgage fees) it makes it easy to move later on assuming your then current financial situation allows.

Regards
Steve
 
Marty McDonald said:
My tip is they will get smashed and then their system will explode. It will be a shamozile. You can't replace professionals with a computer. Many lenders have tried the online processing of loans only to give up.
Click to expand...

Don't think so. UBank is running on a fusion stack and will upgrade to Flexcube later this year. None of the other banks except Comm bank have similiar capacity.
 
wow, you could nearly make money borrowing off them and depositing it back with them!

6.51% on your savings and 6.59% on loans. People say banks are making too much profit.

I would not want a piece of that action. Forget 0.8 LVR I would want 0.3! Why would you risk funds for a measley 0.08%... They must have $1000.00 p.a. fees or some other way to milk people, surely.

Seems too good to be true?
 
Ubank

The banks are all about market share. NAB will see this as a more effective way of capturing a client. They own MLC which is no longer paying commissions on certain products. This is where they will make the money up.
 
Its likley a good product with some restrictions and average service.

AS other have said, we have been here b4, this time may be different, but such skinny margins demand something has to give, somewhere, sometime

ta
rolf
 
My wife has a ubank account and it doesn't seem like they have amazing technology to me. CBA seems more advanced.

Good luck to them I just dont think it will work for all but the most vanilla of borrowers.
 
from what i can see this is only a special they are running until the end of june. after that they would most likely resume their "normal" pricing for new customers which from memory a couple of weeks ago was 6.99 or close to that. They are just doing it for some publicity.
 
Another potential problem to occur is they'll advertise good rates and continue to do this.

Funding will be assigned to 'batches'. Periodically batches need to be refinanced with the funder who's backing the lender.

Batches for new customers will be assigned the most attractively priced funding so they can continue to advertise the most compeditive interest rates. Other batches of loans will be assigned the more expensive funding.

This has occured with many online lenders who have advertised increadibly low rates.
 
NAB

First it was bank wars & now U Bank considering the very low margin.
As we've seen before what's around the corner:
What are they investing in ??
CBA technology
Westpac invest in central hubs

How much will the lack of service cost ??
 
Bradsdad said:
Max LVR of 80% which could be restrictive to many.

No mention of fees for redraw, settlement fees, legal fees or valuation fees so this needs to be investigated.
Can't compare servicing models as brokers don't have access to theirs. This may have an effect on borrowing capacity.

It'll be interesting to see how long this NAB offshoot lasts. Homepath & ANZ Direct didn't last but the rates remained low from my recollection.
I'd assume they are run on a shoestring budget so most resources would be put into gaining new business not retaining/servicing it. I guess with the no DEF (you still have settlement fee I bet and discharge rego of mortgage fees) it makes it easy to move later on assuming your then current financial situation allows.

Regards
Steve
Click to expand...

Hi Steve,

I had a look at their website, there is no on going admin or annual package fees. There is no valuation or settlement fee or early exit fees (if you pay your loan early or switch to some other lender).

There is no offset but you can make extra repayments and you can redraw at no extra charge (min redraw of 1,000)

It looks like a good product but customer service is via call centre

Regards,
TV
 
tvadera said:
There is no offset but you can make extra repayments and you can redraw at no extra charge (min redraw of 1,000)
Click to expand...

That operates the same as an offset then, doesn't it?

I am just wondering about the obligation of the bank with respect to an offset compared to this redraw where their may be no right for the borrower to withdraw this money if the bank does not want them too.
 
Redraw from a loan is not the same as an offset account. Where investment use of funds is involved, there can be substantial advantages of offset accounts over redraw.

Lenders are not neccessarily obligated to honour redraw requests. It's best to read the fine print of the loan agreement terms and conditions.
 
tom32 said:
That operates the same as an offset then, doesn't it?
Click to expand...

When I took out my first home loan I was told that there was no difference between an offset and an account with redraw. Being inexperienced at the time I took this on face value. This piece of bad "advice" (and my lack of further research) cost me many thousands of dollars.

Please research the tax consequences of redraws v offset accounts before making my mistakes! :)

Jason
 
I had the same advise from my old broker.

Suffice to say I don't go to him anymore :p

Lucky I have been reading Somersoft :D

jrc77 said:
When I took out my first home loan I was told that there was no difference between an offset and an account with redraw. Being inexperienced at the time I took this on face value. This piece of bad "advice" (and my lack of further research) cost me many thousands of dollars.

Please research the tax consequences of redraws v offset accounts before making my mistakes! :)

Jason
Click to expand...
 
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