The digital lending space is about to get competitive with the recent announcements from CommBank and ubank.
Digital lender ubank has officially absorbed neobank 86 400, with the merged entity now carrying the name ubank all in lowercase.
ubank chief product officer for lending Kanishka Raja said the new player leverages the established customer base of ubank with the visual identity, technology, and innovation capability of 86 400.
“We’ve created a digital experience that works for the broker, and we will continue to invest in the right people and technology to keep taking our home lending experience to the next level,” he said.
ubank head of broker distribution George Srbinovski said ubank is expected to welcome over 8,000 brokers with the merger.
“We look forward to getting in front of brokers, introducing them to the new ubank and welcoming even more of them to our network as we continue to invest to grow," he said.
The merger was first announced by ubank’s parent company NAB in January 2021.
Commbank unveils Unloan
CommBank launched a digital loan product Unloan, a variable-rate home loan with a discount that increases every year for up to 30 years.
Unloan currently offers owner-occupiers with a variable rate priced at 2.14% p.a. (2.60% p.a. comparison rate). With it comes a loyalty discount that grows by 0.01% p.a. up to 30 years.
Investors taking out Unloan will have a variable rate of 2.44% p.a. (2.34% p.a. comparison rate) and the same loyalty discount.
Unloan CEO Daniel Oertli said the product is built on modern technology foundations and strips away the intricacies of the home loan process, allowing for applications to be completed in as little as 10 minutes.
“We believe home loans should be simple to understand, easy to get, and easier to live with. That’s why we built Unloan – a new kind of home loan designed to pass more value back to customers,” Mr Oertli said.
Unloan was developed by CommBank through the support and infrastructure of its venture scaler x15ventures.
Mr Oertli said this allows Unloan to move at a pace of fintech while, at the same time, benefit from the back-end banking, payments, and compliance services of CommBank.
Frequently asked questions about Unloan
1. What are the fees associated with Unloan?
Unloan charges no fees for home loan applications. However, there will be some mandatory government costs of around $260 to $440, depending on your state, when you switch your home loan. The amount will be added to your loan balance for convenience.
2. What documents do I need to apply?
The only paperwork you will need to apply is proof of your income, which include any of the following: most recent payslip; last 3 months of bank statements indicating permanent employment base salary; or last 6 months bank statement evidencing commission, casual, temporary and seasonal income.
For self-employed applicants, you will also need to provide either a letter from your accountant advising that the company has sufficient profits to meet the business commitments or financial statements of your business over the last two years.
3. What are the eligibility requirements?
Currently, Unloan is accepting applications to refinance home loans of up to $3m and up to 80% of the property’s value. To be eligible, you will need to meet the following:
- Applicants must be over the age of 18.
- You must hold an eligible form of identification: a valid Australian state/territory driver licence or an Australian passport.
- You must have a credit history that meets Unloan policies.
- You receive regular income and are able to provide acceptable documents to verify your income and expenses.
- You have enough to cover any upfront costs associated with the loan.