loans.com.au’s new Zip Home Loan puts credit cards to shame
A new Aussie first offer from loans.com.au combining a low rate home loan and interest-free credit facility, aims to have Aussies cutting up their credit cards.
If you take out a Zip Home Loan from loans.com.au, you’ll get your hands on a two-in-one deal: a 3.68% p.a. interest rate (3.70%*comparison rate) on your mortgage and an interest-free Visa Debit Card.
As well as the low interest rate, the loan itself offers a few flexible repayment features, including free extra repayments and a redraw facility.
The Zip Card is designed to provide the key benefits of a credit card without the hassle. It offers a $5,000 facility that’s attached to a Visa Debit Card, with no interest, no fees and $100 minimum monthly repayments, giving Aussie home buyers access to secured, low cost credit.
“The average credit card debt is about $3,200 - less than our $5,000 limit - and most people have only one card, so the Zip Home Loan with Zip Card really does enable them to say goodbye to credit cards forever while getting the same key benefits,” loans.com.au Managing Director, Marie Mortimer said.
According to loans.com.au, a borrower spending $5,000 with a high interest (20%) credit card, could save $1,000 a year by using the Zip Card instead. This amounts to $30,000 in savings over a typical 30-year mortgage.
“We knew there had to be a better way to deliver the convenience of credit and when we put our heads together, this is what we came up with,” Mortimer said.
“We think this is the way of the future and we challenge the banks to follow us.”
Mozo Data Manager Peter Marshall says that whilst it’s great lenders are making strides to reducing debts, it’s always important to watch out for the fine print.
“A consumer-focused home loan lender is something Australians are missing, and offering a solution to credit card debt is a great place to start,” Marshall said.
“Used wisely, an interest free line of credit attached to your home loan could be a great spending tool to replace a credit card."
If you’re looking for a home loan, make sure to head over to our home loan comparison table to compare competitive rates and features from a range of providers.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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