Are you an owner occupier? There are different rates available with the Low Cost Home Loan Package for those purchasing their own home: The first one sits at a competitive 3.99% (3.99% comparison rate) if you’re looking to borrow over $250,000 with an LVR below 90%. That rate climbs slightly to 4.34% (4.34% comparison rate) for loan amounts under $250,000 with an LVR below 90%. If your LVR is between 90% - 95%, and you'e borrowing more than $250,000, the rate is 4.09% (comparison rate 4.10%).
After an investment loan? For investors rates are quite a bit higher, with a rate of 4.54% (comparison rate 4.55%) if you're looking to borrow over $1 million, 4.59% (comparison rate 4.60%) for amounts between $750,000 and $999,999, 4.64% (comparison rate 4.65%) for amounts between $250,000 and $749,000, and 4.74% (comparison rate 4.75%) for amounts between $150,000 and $249,999, all with an LVR below 90%. If your LVR is higher, between 90% - 95%, you'll pay a rate of 4.74% (comparison rate 4.75%).
The good news is for both owner occupiers and investors the Low Cost Home Loan Package won’t cost you when it comes to upfront fees, with $0 application, legal, valuation and settlement fees. Plus you won’t be charged an ongoing service fee.
The Low Cost Home Loan Package comes with great flexibility, allowing you to choose between repaying both the principal and interest or opting for interest only repayments. You can also set up your repayments to suit your pay day (e.g weekly, fortnightly or monthly).
You’ll enjoy fee free additional repayments thanks to the extra repayments facility and can redraw on that amount when needed through the redraw facility. Alternatively, you could decide to stash your cash in the 100% offset account attached to the home loan.
Who it's good for:
The Low Cost Home Loan Package is a great option for both owner occupiers and investors looking for a low fee mortgage with flexible features attached. Plus, since you can borrow up to 95% of the property’s value, it’s a great option for those first home buyers out there. Investors are however limited to borrowing only 80% of the property's value.
While it’s almost free of fees, just be mindful that there is a $275 discharge fee when you pay out the loan.