Up Bank forays into home loans

The bank's first product will be available for early access to refinancers

Up Bank forays into home loans

News

By Mina Martin

A Bendigo and Adelaide Bank-backed lender will venture into the home loan market, joining the growing number of digital home loan lenders in Australia.

Up Bank said its first home loan product, Up Home, will be available for early access to owner-occupier refinancers; and to be eligible for early access, they must be an existing Up Bank customer.

While eligibility is currently limited to refinancing, the digital bank is aiming to open applications up for wider purposes “on the horizon,” RateCity.com.au reported.

Eligible refinancers can avail of the following interest rates at Up Bank’s initial opening:

Rate type

Interest rate

Comparison rate

Variable rate

3.45%

3.45%

1-year fixed

5.1%

3.6%

2-year fixed

5.65%

3.84%

3-year fixed

5.8%

4.07%

4-year fixed

5.9%

4.29%

5-year fixed

5.95%

4.49%

Refinancers may be eligible with LVRs as high as 90% and can make unlimited additional repayments on the variable rate loan, with extra repayments capped at $30,000 for a fixed rate loan. Up Home also comes with up to 50 free offset accounts, helping borrowers reduce their interest rate charges in a rising interest rate environment.

Up Home also said it does not charge application or set up fees, as well as no monthly or annual fees, redraw fees, or discharge fees.

Up Bank CEO Xavier Shay said the neobank’s home loan offering is “just different.”

“It’s less like the traditional bank loan experience and more like the Up you know and love,” Shay said in the RateCity.com.au report. “Your finances can feel easy again, and you can use all the Up features that already help you save and make money feel simpler.”

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