Ubank for Owner Occupied loan?

Discussion in 'Loans & Mortgage Brokers' started by kennyboi, 27th Jul, 2016.

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  1. kennyboi

    kennyboi Well-Known Member

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    Hi,

    Wonder if I refinance from NAB to Ubank (or any no frills cheap ones out there) on owner occupied loan only, will it affect my investment borrowing power elsewhere?

    Thanks
     
    kennyboi, 27th Jul, 2016
    #1
    Cia likes this.
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Probably not your borrowing capacity right now, but possibly later when you want to access equity for eg.
    They can be fine for set and forget, but there can be issues if you'll need to access equity or similar in the near future.
     
    Jess Peletier, 27th Jul, 2016
    #2
  3. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    U bank is Nabs Home Brand

    It doesnt have offset and quite interesting redraw conditions of the world goes funny

    There are other lenders that have similarish rates, and have offset.

    offset is important for more things than we normally talk about here - eg, tax benefits if you ever rent out etc

    In times of so so financial stability, keeping YOUR money, YOUR money is pretty important.

    With many lenders, once the money goes into the loan, any redraw is subject to the lenders redraw rules..................which right now look perfectly fine.................

    ta
    rolf
     
    Rolf Latham, 28th Jul, 2016
    #3
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  4. kennyboi

    kennyboi Well-Known Member

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    Anyone heard of Click Loans? Any feedback? Are they good with lending capacity? They are as cheap as Ubank with offset.

    My investment loans will still be with the big 4. But owner occupier is dead weight which I think can go to one of the no frills.
     
    kennyboi, 28th Jul, 2016
    #4
  5. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    This ^^^^^ makes me nervous because at anytime the can lock you out and if you need those funds for deposit + costs or example or eating and paying bills, you may not be able to access. I know a financial planner who had funds in redraw that he got blocked from with drawing post GFC. It almost crippled his business.

    LOC are good for keeping the loans from being "mix use" or contaminated" but also have the same criteria applied, that is the limit can be wound back at anytime with out notice to you.

    A term is loan is just that and as long as you make repayments on time all should be dandy.
     
    Colin Rice, 28th Jul, 2016
    #5
  6. Dean Collins

    Dean Collins Well-Known Member

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    was disappointed to learn recently that Ubank wont lend to Aussie expats.

    Basically doesn't matter about serviceability/LVR etc.....just not interested in expats and have put them into the "too hard basket".

    Something to think about if you ever plan on working overseas.
     
    Dean Collins, 2nd Aug, 2016
    #6
  7. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    There are lots of other lenders that will provide lending to expats, usually on reduced LVRS depending on the currency,

    Ubank is a Sausage factory - they dont make Meat Pies.

    Similarly, if I go to a Chinese Restaurant, I should not be concerned that they dont do great Spaghetti..............

    U bank is a very suitable product for many mainstream PPOR/IP loans as long as one understands the pros and cons.

    ta
    rolf




    ta
    rolf
     
    Rolf Latham, 2nd Aug, 2016
    #7
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  8. tobe

    tobe Well-Known Member

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    read some reviews, its more like, 'yes we can make pies, no worries, Ill just get one out of the oven'..... then a week or two later, 'who are you again? Oh, you need to fill out these forms', then, 'Hi how many sausages would you like?'.
     
    tobe, 2nd Aug, 2016
    #8
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  9. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    As opposed to;

    "Hi John,

    (via email without having to call) Your application is with the credit department and we are anticipating an approval this Friday based on assessors feedback. We will update you accordingly" (3 issues had to be addressed by the brokers office that John was not aware of to get it to this stage that where created by the bank).

    Please dont hesitate to call or email us if you have any questions or concerns.

    Regards,

    Your Broker"
     
    Colin Rice, 2nd Aug, 2016
    #9
    Jess Peletier likes this.