Westpac is running an introductory discounted offer which gives you a 0.68% discount off the ongoing rate, so you only pay 3.88% variable, then 4.59% after 2 years. You won't have to pay an establishment fee and there are no ongoing loan maintenance fees to pay.
You can borrow up to 95% of the property value with the Westpac Flexi First Option Home Loan, though loans over 80% LVR will require lenders mortgage insurance.
As the name suggests, the Flexi First Option is about giving you flexibility. You can set up repayments to suit your pay cycle with weekly, fortnightly and monthly options available. You can make extra repayments on the loan at any time and there is a redraw facility but each time you withdraw you will be charged a $25 redraw fee.
What's great about this loan is that you only pay for the things you use. So, if you want to set up a repayment holiday (as long as you're ahead on your repayments) or you need to take time off for family reasons you can opt to reduce your repayments by 50% for 6 months. To do this, you'll need to pay the $95 activation fee.
Who it's good for:
Borrowers who are looking for a basic home loan now but want to have the flexibility to add features if their circumstances change.
If you decide to move homes, the Flexi First Option Home Loan is portable but its not a free feature - there is a $350 fee to pay. The good news is that it means you won't have to pay new loan establishment fees which can often be much more expensive.