Question 1

What are we calculating?

Accepted Answer

This calculator gives you an estimate only of what your repayments may be with a Ubank home loan. Calculations are based on the loan amount and loan term you entered, our current home loan interest rates and the other loan variables you select.

Question 2

How to interpret these results?

Accepted Answer

The results are a guide only, it is not a loan approval and unless otherwise stated is based on the information inputted into the calculator. The calculator is not intended to be relied upon to make a decision in relation to a home loan product and you should consider obtaining professional advice before making a decision.

The results assume regular scheduled minimum repayments are made and paid on time. The benefit of any extra repayments are assumed to take place from the first repayment and are ongoing for the full loan term. It is assumed the interest rate selected does not change during the loan term.  If you select a fixed rated or interest only rate (or both), the rate will be the relevant fixed and/or interest only rate for the duration of this period and then the current variable interest rate will apply for the remainder of the term based on the starting LVR tier.   In reality, interest rates can and do change over the loan term. The rates and repayment amounts do not include any fees or charges, interest offset benefits or lenders mortgage insurance, if applicable.

Question 3

How are mortgage repayments calculated?

Accepted Answer

Mortgage repayments are calculated by taking your loan amount, interest rate, loan term, repayment frequency and repayment type into account.

Question 4

What are principal and interest (P&I) repayments?

Accepted Answer

When you make a principal and interest (P&I) repayment, your repayment goes towards paying off your loan (otherwise known as the principal) as well as the interest on your loan.

P&I repayments are calculated so that you will have paid out your loan in full by the end of your loan term. Your P&I repayments are scheduled on the same day of the month as your first repayment, provided you haven’t changed the repayment date and/or frequency since then.

Question 5

What are interest only (IO) repayments?

Accepted Answer

When you have a loan with interest only (IO) repayments, you only pay the monthly interest charged on your loan meaning you won’t reduce your remaining loan balance, otherwise known as your principal. You can opt into IO repayments for a certain time period agreed by both you and Ubank. Once your IO repayment period is over, you will automatically revert to principal and interest (P&I) repayments.

IO repayments are available for a maximum of 5 consecutive years per application, and a total maximum of 10 years during the life of your loan. You can get IO repayments on both owner occupied and investor loans subject to credit acceptance, however not within the last 5 years of your loan term.

Question 6

How is interest calculated?

Accepted Answer

We calculate interest daily by multiplying the loan account balance by the daily percentage rate at the end of each day. The daily percentage rate is the annual percentage rate divided by 365, rounded to six decimal places. It is also important to note that Ubank rounds the daily interest to the nearest cent.

We debit interest to your loan account monthly in arrears on the last day of the month, and on the day you repay the total amount owing.

Question 7

How do I nominate what frequency I would like to make my repayments?

Accepted Answer

A repayment frequency can be nominated on the Home Loan Repayment Authority Form, before settlement takes effect. Otherwise, you can change the frequency by contacting the call centre, after settlement occurs.

Question 8

Can I make additional payments into my loan?

Accepted Answer

You can pay extra through the Ubank app or direct transfer from another institution.

Additional payments will not incur fees on our variable rate loans, but you will be unable to pay greater than the prepayment threshold for any fixed loans. This is $20,000 in a fixed rate term per loan. i.e. If your loan is fixed for 3 years, you can pay up to $20,000 in extra repayments during that 3-year period. If you make extra repayments over and above $20,000, you may incur break costs.

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