UBank now offering 85% LVR home loans with no requirement for Lenders Mortgage Insurance

From today, we’re offering home loans of up to 85% Loan to Value Ratio (LVR) to owner occupiers paying principal and interest or interest only, without the requirement for Lenders Mortgage Insurance (LMI), subject to eligibility criteria.


That means on an average loan of $480 000 with an 85% LVR, owner occupier customers will only need a 15% deposit, instead of 20% and will save approximately $5000 on insurance*.


According to a 2021 study, the average Australian saves $717 a month**. This means aspiring homeowners could enter the market nearly seven months earlier with UBank’s 85% LVR home loan than if they had to pay LMI up front.


For loans of >80-85% LVR, UBank will offer a standalone variable rate for owner occupiers paying Principal and Interest, of 2.49% (comparison rate 2.49%), and a 3-Year fixed rate of 2.05% (comparison 2.41%) for Owner Occupiers paying Principal and Interest.


LMI can add tens of thousands of dollars to a loan and months of additional savings time. Here at UBank, we believe it’s an extra expense our customers can do without.


Let us help you make your move, sooner than you thought.

 

*https://www.genworth.com.au/products/tools/lmi-premium-calculator

** Finder data shows that on average Australians save $717 per month. The average monthly saving for men is $839 and for women it's $598.


Important information

UBank is a division of National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686.The credit provider is AFSH Nominees Pty Ltd ABN 51 143 937 437 Australian Credit Licence 391192. UBank is the mortgage manager for our home loan products.Credit criteria and fees and charges can apply. Home Loan Terms & Conditions available on application.

The comparison rate is based on a secured loan of $150,000 over the term of 25 years. WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.