What is the right type of loan for you? That depends on your circumstances. If the new home is going to need some new furniture, a loan with an introductory rate will free up cash flow. If you think interest rates are on the march, you might want to lock in a fixed rate. And if you want to keep your options open, a variable rate is worth investigating.
To make your property that little bit more affordable up front, our Mortgage Shredder Variable Intro Home Loan gives you a 1% p.a. discount off our standard variable rate for the first 12 months of your loan
Fixing your interest rate makes it much easier to budget for repayments as you are protected against rising interest rates. The downside is if rates fall, you miss out on the savings. You also have less flexibility when it comes to making extra repayments.
Our variable rate loans give you the option of paying principal (i.e. the loan amount) and interest, or interest only for various lengths of time. You also have the flexibility of making extra repayments when you can.
The loan to Property Value Ratio or LVR is the portion you are borrowing of the total value of the property used as security for the loan.
For example, a customer applying for a $240,000 loan for a property valued at $300,000 would be borrowing at a 80% LVR.
If you’re borrowing over 80% of your home’s value banks require you to take out Lenders Mortgage Insurance (LMI). This insurance protects the bank in case you default on the loan. You can either pay a one-off premium or have the fee added to your loan amount.
Come to us or we'll come to you
Helping you through the home loan process.
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