Avoid LMI at Ubank
What is Lenders Mortgage Insurance (LMI) and why won’t I pay it with Ubank?
LMI, or Lenders Mortgage Insurance, is a one-off insurance cost that’s payable when you borrow with a smaller deposit.
The purpose of LMI is to cover the lender (your bank) as there is an increased risk when you purchase a home with a smaller deposit, and more money is being lent to you by your bank. In most cases home loans with a deposit less than 20% of the property’s value will mean you’ll have to pay LMI.
Luckily Ubank is one of the few lenders that offers 15% deposit home loans without LMI.
It’s another way Ubank is helping more Australians realise their home ownership dreams sooner.
How much could you save?
| Property Value | 15% Deposit | Loan Amount | LMI Payable |
|---|---|---|---|
$500,000 | $75,000 | $425,000 | $4,237 |
$600,000 | $90,000 | $510,000 | $5,100 |
$700,000 | $105,000 | $595,000 | $5,950 |
$800,000 | $120,000 | $680,000 | $6,800 |
$900,000 | $135,000 | $765,000 | $9,104 |
$1,000,000 | $150,000 | $850,000 | $10,115 |
Interest rates with 85% LVR
Here’s all our interest rates for loans up to 85% LVR
Neat variable home loan
Owner Occupied, Principal and Interest (P&I)
A low variable rate home loan with no ongoing annual fees. Great if you don’t need an offset account.
| Loan to Value Ratio (LVR) | Interest rate (p.a.) | Comparison rate (p.a.) 1 |
|---|---|---|
Up to 85% | 5.99% | 6.01% |
Flex variable home loan
Owner Occupied, Principal and Interest (P&I)
Offset up to 100% interest with multiple Ubank accounts and you can make unlimited additional payments. You can also decide to split your loan into a fixed and variable interest loan.
| Loan to Value Ratio (LVR) | Interest rate (p.a.) | Comparison rate (p.a.) 1 |
|---|---|---|
Up to 85% | 5.99% | 6.23% |
Flex fixed home loan
Owner Occupied, Principal and Interest (P&I)
Lock in your interest rate for 1, 2, 3 or 5 years and be certain of what your repayments will be.
| Terms (up to 85% LVR) | Interest rate (p.a.) | Comparison rate (p.a.) 1 |
|---|---|---|
1 year | 5.62% | 6.19% |
2 year | 5.53% | 6.14% |
3 year | 5.58% | 6.12% |
5 year | 5.79% | 6.15% |
Compare our home loan options
Home loans, like homes, aren't one-size fits all
Neat variable Take it back to basics with no annual fee and low variable rates | Flex variable Pay off your loan faster with 100% interest offset on your linked Ubank accounts | Flex fixed Lock in your rate for up to 5 years and budget with confidence | |
|---|---|---|---|
Redraw Take back any additional payments at no extra cost | up to $20K during fixed term | ||
Additional payments Pay back more than your minimum repayments for free | up to $20K during fixed term | ||
Split option You can split your loan with a fixed rate and a variable rate | |||
Offset account(s) Reduce the amount of interest you pay each month with multiple offset accounts | |||
Annual fee To manage accounts and any changes across up to 5 Flex split loans | $0 | $250 p.a. | $250 p.a. |
Home loan eligibility
Let’s see if we’re a good match
Testimonials
Overall a very easy process, quick approval and settlement.
Customer in NSW
Applying for a home loan with Ubank couldn’t have been easier, which we really appreciated as we had to apply during an extremely difficult time in our lives. Our home loan advisor Luci stepped us through the process with professionalism, kindness and patience and we can’t thank her enough for making our home loan application process so painless. From the detailed instructions about what we needed to provide and speedy approvals, we were never left wondering about the next step. Thanks so much Luci, for getting us into our forever home where my Dad will always know where to find us.
Customer in NSW.
Ready to take the leap with a 15% deposit and no LMI?
Chat to one our local lending specialists.
Call us on (02) 9058 7404 Monday to Friday 9am-7:30pm, Sat and Sun 9am-5:30pm (Syd time)
