Ubank loan ready to roll

National Australia Bank will introduce a discounted home loan through its UBank brand in a couple of weeks. The interest rate on this variable rate loan is likely to be less than seven per cent.

UBank's product set remains slim two years after NAB introduced the alternative brand to the market, in late 2008, with a handful of deposit products. The most recent, aimed at self-managed super funds, was introduced only a few weeks ago.

The home loan will be the first credit product marketed by UBank.

Internal demonstrations of the home loan are using a price point of 6.50 per cent, though the actual price point is yet to be settled.

NAB's standard variable home loan rate is 7.24 per cent. Its 12-month introductory rate is 6.15 per cent (reverting to the higher rate later on). The bank's "base variable" rate, which is a continuing rate, is 6.74 per cent.