Question 1

Why are you doing this?

Accepted Answer

RateUnity was founded to challenge the unfair power held by banks over mortgage holders. 
By bringing Australians together, we use strength in numbers to secure fairer mortgage rates.

Our mission is to return power to everyday people and help reduce the financial strain many households face.

Question 2

How does RateUnity get such a competitive rate?

Accepted Answer

We keep mortgages simple:

• Sharp rates direct from RateUnity
 • Access to 40+ banks through our partners if our loan isn’t the right fit

By using a low referral fee model and avoiding ongoing trail commissions, we can help secure lower mortgage rates for customers. Our role is to connect you with lenders and partners who can assess your individual circumstances.

Question 3

What if I decide not to proceed with RateUnity?

Accepted Answer

You may decide that the offer isn’t suitable for your circumstances, or simply that you’d prefer to remain with your current loan.
 If that’s the case, you’ll be able to select a “no change” option. This will indicate that you do not wish to participate in the current group offer being negotiated.
We may keep you informed about future opportunities, should your circumstances change or new rates become available.

Question 4

Will completing the RateUnity form affect my credit rating?

Accepted Answer

No. Registering with RateUnity does not affect your credit rating. 
If you choose to proceed with a loan, the lender will conduct a credit check, recorded as a “hard inquiry,” which may temporarily lower your score by a few points.

Question 5

What is a Hero Bank?

Accepted Answer

A Hero Bank is a financial institution that has pre-approved sharp rates exclusively for RateUnity customers.

Question 6

What is Open Banking and does RateUnity use it?

Accepted Answer

RateUnity is not currently using Open Banking, but hopes to in the near future.
Open Banking allows you to securely share your banking data with third parties accredited by the Australian Competition and Consumer Commission (ACCC). Since 1 November 2020, Australian bank customers have been able to grant accredited organisations access to data such as savings, credit cards, mortgages, personal loans and joint accounts.

This can make it easier to:
 • Compare banking products and find a better deal
 • Manage accounts in one place
 • Switch between products or banks more smoothly

You control how your data is shared, and ACCC rules protect that data.
In future, RateUnity may use Open Banking to help with validation, verification and credit review steps, making the mortgage process faster. This would only be possible with your consent, in addition to accepting the Terms and Conditions included in the RateUnity sign-up form.

For more information, visit the Australian Banking Association’s Open Banking page.(https://www.ausbanking.org.au/priorities/open-banking/)

Question 7

What is the difference between Fixed, Variable, and Split rate loans? What about Interest Only vs Principal & Interest?

Accepted Answer

Fixed rate
 A fixed rate loan has an interest rate that stays the same for a set period of time (usually one to five years). At the end of the fixed term, the loan normally switches to a variable rate.

Variable rate
 A variable rate loan has an interest rate that may go up or down during the life of the loan. These changes affect the amount of interest you pay. Variable rates are closely linked to the Reserve Bank of Australia (RBA) cash rate. For current and historical cash rates, see the RBA website.

Split rate
 A split loan combines both fixed and variable. For example, 70% of the loan may be fixed and 30% variable. This gives you some certainty on part of your loan while keeping flexibility on the other.

Principal and Interest (P&I)
 Your repayments cover both the amount you borrowed (the principal) and the interest charged on that amount. Over time, your loan balance reduces as you keep repaying.

Interest Only (IO)
 Your repayments cover only the interest charged, not the principal. This means your monthly payments are lower, but your loan balance doesn’t reduce unless you make extra repayments.

Question 8

What is a Comparison Rate?

Accepted Answer

A Comparison Rate (CR) is a standard way of comparing mortgages in Australia. 
It includes both the interest rate and most fees, based on a sample $150,000 loan over 25 years.

For example:
 • Own home variable 4.89% (CR 5.20%)
 • Own home offset 4.99% (CR 5.28%)
 • Investment P&I 5.04% (CR 5.35%)

This ensures you can compare “apples with apples” across different lenders.

Question 9

What is a Loan to Value Ratio (LVR)?

Accepted Answer

The Loan to Value Ratio is the loan amount compared to the property value, expressed as a percentage. An LVR below 80% is generally considered strong. 
Above 80%, most lenders require Lenders Mortgage Insurance (LMI).

Question 10

What is LMI?

Accepted Answer

Lenders Mortgage Insurance (LMI) is a one-off insurance premium that you may need to pay if your deposit is typically less than 20%. It protects the lender, not the borrower, if the loan can’t be repaid.

Question 11

If I am part way into my Fixed rate mortgage, then how can Rate Unity help?

Accepted Answer

If you’re part way through a fixed rate term, it’s important to understand that breaking a fixed rate mortgage early can come with significant fees and penalties.
You should seek independent financial advice before making any decision to leave a fixed rate loan early.

RateUnity can still assist by:
 • Registering your details so you’re included in our groups for future sharper rates once your fixed term ends
 • Keeping you updated on current offers, so you’re ready to act when your fixed period expires

Question 12

Are you associated with Unity Bank or Australian Unity?

Accepted Answer

No. RateUnity is not associated with Unity Bank or Australian Unity.

Question 13

What are the Bank Fees associated with RateUnity's great rate?

Accepted Answer

For loans arranged through RateUnity, the main bank fees are:

• Offset product: $199 application fee
 • Basic variable product: $150 + $199 application fee = $349

Please note this does not include funds required to complete the loan, or mandatory government fees and charges that apply when refinancing or purchasing a home.

These may include:
 • Mortgage registration and discharge fees
 • Mortgage transfer fees
 • Stamp duty (on purchases)

These costs are set by state governments and lenders, and will depend on your personal circumstances.

FAQ