Key features:
The Gateway Bank Fixed Rate Home Loan package offers some great fixed rates within a 1 - 5 time frame, with rates starting at just 3.77%. And while there is a yearly $299 service fee, you won’t have to fork out an application, legal, valuation or settlement fee. But it wouldn’t be called a premium package if there weren’t any added perks.
This loan gives borrowers the chance to earn an extra 0.10% p.a on a Gateway Bank term deposit along with a discount on a CGU general insurance policy. You’ll also be able to get on top of your loan with the free extra repayments facility, however, you should be certain before doing this, as there is no redraw facility with the loan. And if you’d like to try a loan with both rate types, you might be happy to know that you will be able to split your loan.
First home buyers with a deposit of less than 20% are able to apply for this loan, thanks to the maximum LVR of 95%, but in this case, you will need to pay lenders mortgage insurance. Just keep in mind that there is no offset account with this packaged loan and that once it has been paid off, there is a $300 discharge fee.
Who it's good for:
The Gateway Bank Fixed Rate Home Loan is a good option for owner occupiers or investors who are keen to fix their rate for a few years with a decent rate.
Any catches?
Because there’s no redraw facility with the Fixed Rate Home Loan Premium Package, you’ll want to be certain before making any additional repayments.
The 4.57% revert rate is also something you’ll need to remember, as it might be a good idea to compare other offers in the market to make sure you’re still on the most competitive rate.
