Ally Bank Mortgage Review 2024

Ally Bank overview

Ally Bank began offering direct-to-consumer home loans in 2016. The bank and lender provides several mortgage options, including conventional loans, jumbo loans and adjustable-rate loans in five- seven- or 10-year terms. Ally Bank also offers refinancing options, including rate-and-term and cash-out, but doesn't offer FHA loans, VA loans, USDA loans or home equity loan options. You can lock in your rate for up to 45 days. For a home purchase loan, the bank currently averages 35 days to close. However, Ally Bank seems to be pulling back on lending activity – it ranked 330th among all lenders nationally in 2023, down from 159th in 2022, according to federal data. Ally’s average loan size was $1.3 million, reflecting the lender’s focus on jumbo loans.

In March 2024, Ally began offering $5,000 grants to eligible first-time homebuyers in Charlotte, Detroit and Philadelphia.

Pros and cons of Ally Bank

How Bankrate scored Ally Bank

• Affordability: Ally Bank’s mortgage rates aren’t as competitive compared to those of some other lenders, but it doesn’t charge loan fees.
• Availability: Qualified borrowers in all states can get a mortgage through Ally Bank. You won’t be able to get a government-backed loan from this lender, however.
• Borrower experience: Some customers have shared less-than-stellar feedback about the bank online, but the complaints aren’t typically tied to mortgages, but rather banking services or auto loans.

Affordability: 3.4/10

Ally Bank doesn’t charge lender fees, and it posts detailed rate information on its website, often updated throughout the day. The bank’s mortgage rates are right in line with Bankrate’s averages, so shop around — you might find you get a better deal elsewhere.

Availability: 9/10

Ally Bank only offers conventional loans, both conforming and non-conforming if you’re buying a higher-priced property. It doesn’t offer FHA, VA or USDA loans, which might be  limiting for some borrowers. The bank is licensed to lend mortgages in all states.

Borrower experience: 8.6/10

Ally Bank has an A grade from the Better Business Bureau, but isn’t accredited by the organization, and its Trustpilot rating is “Bad” based on several hundred complaints (at the time of this review). However, its J.D. Power score is near the top of the pack of large loan originators. The bank doesn’t have brick-and-mortar locations, so if you’re looking to get a mortgage, you’ll do so online. It offers tips and educational articles about the mortgage-lending process on its website, and if you have the Ally Bank app, you can access your home loan easily on your phone. Once preapproved, you'll upload, sign and submit documents online. Its preapprovals and rate locks are powered by its partnership with Better, a digital mortgage lender.

How to apply for a mortgage with Ally Bank

You can apply for a mortgage with Ally Bank online or by phone at 855-256-2559. Here are some tips to prepare for the process:

1. Check your credit report. Ally Bank focuses on jumbo loans, and for that type of loan, a strong credit score is crucial. It’s important to check your credit report before Ally does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for.
2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Ally Bank

Ally Bank offers both rate-and-term and cash-out refinancing options.

Special programs from Ally Bank

Ally Home Grant

Ally offers $5,000 grants to eligible first-time homebuyers in Charlotte, Detroit and Philadelphia. To qualify, a borrower must live in the property, earn less than 100 percent of the area median income and purchase a home in a minority census tract. Your Ally rep can help determine whether you’re eligible.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%
  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%
  • Borrower experience: Rate transparency - 45%; customer service - 25%; convenience - 10%; days to close - 10%; rate locks - 10%; reputation (bonus)

  Learn more about our methodology.

  How we suggest lenders to compare

  To help you make the most informed decisions, our editorial team suggests two (2) alternative mortgage lenders for each lender reviewed in our comparison table. In most cases, these alternatives 1.) share the same strength (affordability, availability or borrower experience) as the lender reviewed; and 2.) rate highly for Bankrate Score. In the event more than two lenders meet these standards, we suggest the ones with the lowest APRs.