Up Bank will offer home loans, four years after the launch of the neobank

From digital bank to now digital lender, Up Bank has opened expressions of interest for homeowners looking to refinance their home loan.

As the number of Aussies seeking refinance in the wake of rising interest rates continues to rise, Bendigo-backed Up Bank has announced the launch of ‘Up Home’.

Initially open to expressions of interest only for homeowner refinancing, Up Home will offer variable and fixed home loan options.

Currently, the Up Home Variable Rate Loan offers a variable interest rate of 3.45% per annum (comparator rate of 3.45% per annum*).

For customers wishing to refinance with a fixed rate loan, Up Home fixed term loans offer fixed interest rates from one to five years, with a one-year rate of 5.10% per annum (comparative rate of 3.60% per year*).

Homeowners looking to refinance an Up home loan will need to be an Up Bank customer, also known as an “Upsider”.

Additionally, Up Bank notes that if you are looking to take out a loan with another person, you will need to have a 2Up account through Up Bank.

Allowing refinancing only has been a popular route for emerging lenders, with Unloan and OneTwo launching only a few months ago, while Nano only started allowing new loans in March.

Up CEO Xavier Shay said Upsiders love the Up app and don’t want to go back in their banking experience just to get a home loan.

“So for us the right time to launch Up Home was as soon as we could make it a reality,” Mr Shay told Savings.com.au.

“As rate pressure looms large on people’s minds, we believe Up’s built-in insights and savings features will make Up Home truly appealing.”

Calling itself a simple loan for homeowners, Up Home will provide customers with access to over 50 free clearing accounts and free withdrawal facilities.

Plus, Up Home will allow customers to get started with as little as 10% down, with unlimited additional repayments on a variable rate home loan or up to $30,000 on a fixed rate home loan.

“Most of our customers are between 16 and 25 years old,” Shay said.

“Actually, getting a home loan might take a while, but there are a lot of things they can do to save and learn now.

“We’ve created a savings product that will help them save and walk them through the home loan journey to help them successfully manage what will likely be the biggest financial decision they’ll ever make.”

Hospitality expenses

Up Home is a free digital product from Up Bank, which means Up Bank customers or Upsiders looking to refinance will not pay any application or setup fees, discharge fees, monthly or annual bank fees.

Up Bank will pay the first $400 appraisal fee, which it says will cover most properties.

Home Eligibility

Currently, Up Home is only accepting expressions of interest from homeowners looking to refinance home loans up to $10 million and up to 90% of the property value.

To be eligible for an Up Home loan, the following conditions must be met:

  • All applicants must be over 18 years old.
  • You hold eligible ID – a valid Australian state/territory driving license or Australian passport.
  • All borrowers on the loan application have good credit histories that comply with Up’s policies.
  • You are applying alone or with another Upsider – if you are applying with someone else, they must have a 2Up account.
  • You receive a regular income and are able to provide acceptable documents to verify your income and expenses, eg payslips, bank statements.
  • You refinance an existing mortgage to live there.
  • The loan will be 90% or less of the value of the property and is between $50,000 and $10,000,000.

Advertising

Looking to refinance? The table below shows home loans with some of the lowest interest rates on the market for homeowners.



Lender


Variable More details
ALREADY INCLUDES RBA RATE INCREASE IN JULYUNLIMITED WITHDRAWALS

Smart Booster Home Loan Discounted Variable – 2 years (LVR
  • Already includes July RBA rate increase
  • Fast turnaround times, can meet 30 day settlement
  • For purchase and refinancing, down payment min 20%
  • No ongoing or monthly fees, add 0.10% compensation

Variable More details
100% COMPLETE CLEARING ACCOUNTNO APPLICATION FEES OR ON-GOING FEES

Low Rate Home Loan – Premium (Principal & Interest) (Owner Occupant) (LVR
  • No upfront or ongoing fees
  • 100% cleared account
  • Additional refunds + withdrawal services

Variable More details
REFINANCING ONLY

Variable Rate Home Loan – Refinance Only

  • A low variable rate home loan from a 100% online lender. Supported by the Commonwealth Bank.
Variable More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster

Careful variable real estate loan (capital and interest) (LVR
  • No ongoing fees – None!
  • Unlimited additional refunds
  • Easy online application, quickly find out if you are approved!
  • Redraw – Access your extra payments if you need them
  • Use the app for loan information to help you pay off your home loan faster


Basic criteria: a loan amount of $400,000, variable, fixed, principal and interest (P&I) real estate loans with an LVR (loan-to-value) ratio of at least 80%. However, the “Compare mortgages” table allows calculations to be made on the variables selected and entered by the user. All products will list the LVR with the product and price list which is clearly published on the product supplier’s website. Monthly repayments, once the basic criteria are modified by the user, will be based on the advertised prices of the selected products and determined by the loan amount, repayment type, loan term and LVR as entered by the user. user/you. *The comparison rate is based on a loan of $150,000 over 25 years. Please note: this comparison rate is only true for this example and may not include all fees and charges. Different terms, fees or other loan amounts may result in a different comparison rate. Rates correct as of July 20, 2022. See disclaimer.


Image by Up Bank

The whole market has not been taken into account in the selection of the above products. Instead, a reduced portion of the market was considered. Products from some vendors may not be available in all states. To be considered, the product and price must be clearly published on the product supplier’s website. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au and Performance Drive are part of the Savings Media group. In the interest of full disclosure, Savings Media Group is associated with Firstmac Group. To learn how Savings Media Group handles potential conflicts of interest, as well as how we are paid, please visit the website links at the bottom of this page.

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