UBank home loan product finally launched
(22 February 2011 – Australia) National Australia Bank’s online subsidiary UBank has finally launched its long-awaited home loan product, as the big four embark on a war to lure each-others customers in.
The direct-marketed online UHomeLoan carries a 7.05 percent variable rate, with a 6.98 percent comparison rate due to a 10 basis point discount customers receive after three years.
UBank has said that the loan also carries no application fees, no break fees and promises settlement in as little as 10 business days.
While banks’ offering online home loans continues to be an area of growth, Homeloans national marketing manager Will Keall has said that he does not believe the online channel represents a legitimate threat to brokers.
Mr Keall said that while Homeloans had recently launched its own online proprietary product, the channel would not overtake broker-originated loans any time soon.
"I don’t believe that will happen in the foreseeable future," Mr Keall told Australian Broker News.
"We still see the third party broker as being the most important source of business for us. The experience brokers provide cannot be replaced by an online mortgage offering."
"There is a segment of the market that wants to do business online, but when it comes to the serious commitment a home loan represents, I think most people know it would be wise to consult a broker."
UBank has said that the loan also carries no application fees, no break fees and promises settlement in as little as 10 business days.
While banks’ offering online home loans continues to be an area of growth, Homeloans national marketing manager Will Keall has said that he does not believe the online channel represents a legitimate threat to brokers.
Mr Keall said that while Homeloans had recently launched its own online proprietary product, the channel would not overtake broker-originated loans any time soon.
"I don’t believe that will happen in the foreseeable future," Mr Keall told Australian Broker News.
"We still see the third party broker as being the most important source of business for us. The experience brokers provide cannot be replaced by an online mortgage offering."
"There is a segment of the market that wants to do business online, but when it comes to the serious commitment a home loan represents, I think most people know it would be wise to consult a broker."