Ubank Ups Pressure With No LMI

Ubank has ignited fresh competition in the mortgage market by scrapping Lenders Mortgage Insurance on a new 10 per cent deposit product for both owner occupiers and investors.

The Flex and Neat home loan allows buyers to enter the market with deposits as low as around $31,000 in select inner-city suburbs, significantly reducing upfront costs that typically stretch into tens of thousands of dollars.

The move arrives as government-backed first home buyer schemes expand, effectively stacking incentives and lowering barriers to entry for eligible borrowers.

Ubank’s chief lending officer, Ray Jokhan, says the product is designed to help buyers get in sooner, build equity, and potentially access sharper rates once loan-to-value ratios fall below 80 per cent.

The bank is also positioning the offer to support rentvesting, with more first time buyers choosing to rent in preferred lifestyle locations while purchasing in more affordable areas.

For investors and first home buyers, the change improves access, but also has the potential to fuel extra demand in already tight markets.