loans.com.au Offset Variable Home Loan

The loans.com.au Offset Variable Home Loan is a low rate home loan funded and underwritten by Firstmac, one of Australia's largest mortgage providers.

The loans.com.au Offset Variable Home Loan offers a competitive variable interest rate, no application fee, no annual fee, an offset account with free redraws and extra free features like BPAY, direct credit and debit transactions.

This product is no longer on the market

This product is no longer available. Information on this page is not up to date and may not reflect accurate product information. You can find loans.com.au's current mortgage offers here.

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By

Marc Terrano

Updated

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Details

Pros and Cons

Pros

  • There is $0 application or ongoing monthly fees.
  • You can make extra payments without penalties and access extra funds from the mortgage via the free redraw facility, with no minimum redraw amount
  • A 100% offset account is linked to your home loan

Cons

  • There is a $220 valuation fee
  • There is a $300 settlement fee
  • There's no branch access with this loan as the lender is online only

About this loan

What are the features and benefit of the loans.com.au Offset Variable Home Loan?

  • 100% offset account. A 100% offset account enables you to pay off your loan sooner by reducing the amount on which interest is calculated. An offset account is a regular transaction account that has a VISA Debit card with ATM access, cheque book access and internet access. You can also redraw from this account if you need extra funds.
  • Loan term. This loan's minimum term is 15 and the maximum term is 30 years.
  • Loan to value ratio (LVR). The maximum loan to value ratio (LVR) for this loan is 90%. Borrowing more than 80% will require you to pay lenders mortgage insurance (LMI).
  • Repayment options. Repayments can be made weekly, fortnightly or monthly with the Offset Variable Home Loan. Interest-only repayments are available for up to five years.
  • Redraw facility. This loan has a free redraw facility with no minimum redraw amount. This means you can get access to any additional repayments you've made 24/7, either online or over the phone.
  • Loan amount. The minimum loan amount is $50,000 and the maximum loan amount is $2,000,000 if you're only using one asset to secure the loan (your property).
  • Accessibility. You can access your account online or by phone at any time. You can manage your money from an online interface which includes your loan transactions, loan statements, redraws and bill payments. You also get a VISA debit card that is connected to your offset account and has the additional security of Verified by VISA protection.
  • Split your loan. You can split your loan up to five times without incurring any additional charges. Splitting your loan gives you the ability to hedge your bets against upward rate movements, while also leaving room to take advantage of a reduction in lending rates.

What fees and charges come with this loan?

The Offset Variable has no application, annual or monthly fees to worry about. Below are the fees you will have to pay with this loan:

  • Settlement fee: $300.
  • Valuation fee: $220 or at cost. This covers loans.com.au's third party costs. loans.com.au will have to have the value of your property appraised before they can use the property as a security to lend against. This fee typically increases when your property value is above $1 million.
  • Discharge fee: $300. This fee covers the administrative costs of preparing your loan discharge documents. Although loans.com.au say that there is no exit fee with this loan, when you pay out loan it will still be considered a discharge and the relevant fee will apply. Discharge fees are waived if the loan goes to full term.

How to apply

If you think the loans.com.au Offset Variable Home Loan is for you, then click 'Enquire' or 'Go to Site' and you will be safely redirected to the loans.com.au homepage. Once you've been redirected you will see a pink button that will allow you to enter your basic information. loans.com.au will then you give you an obligation-free follow up call. Scroll down to view the loans.com.au application process so you know what to expect.

The below diagram is courtesy of loans.com.au and represents the loan application process after you contact them.

loans.com.au application process
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Review by

Marc Terrano is a lead publisher and growth marketer at Finder. He has previously worked at Finder as a publisher for frequent flyer points and home loans, and as a writer, podcast host and content marketer. Marc has a Bachelor of Communications (Journalism) from the University of Technology Sydney. He’s passionate about creating honest and simple reviews and comparisons to help everyone get value for money.

Expert review

This home loan can be used to buy residential property as a home or investment, or to refinance an existing home loan. Note that using this home loan to finance an investment comes with a higher interest rate.

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83 Comments

    Default Gravatar
    Verchiani
    January 31, 2019

    If I take out this loan at the current low rate of p&i in the eventuality that the home loan rate increases will this loan increase as well? If the loan rate increases by say 0.25% at the end of year one, is the adjusted monthly payment calculated on the net amount outstanding after paying P for the year? How does it work?

    Reply
      AvatarFinder
      Jeni
      February 2, 2019

      Hi Verchiani,

      Thank you for getting in touch with finder.

      The rate will be calculated on the outstanding balance. If you consider getting a home loan with loans.com.au, I suggest that you contact them directly to answer your query more accurately. They will be asking you some info such as purchasing or refinancing a property, live in or investment etc. You may also chat with their online representative after clicking on the green go to site button to further discuss this with them in details or arrange an appointment to be booked with one of their Lending Managers.

      I hope this helps.

      Thank you and have a wonderful day!

      Cheers,
      Jeni

      Reply
    Default Gravatar
    Paul
    November 11, 2017

    Want to buy a hot property now

    Reply
      Default Gravatar
      Arnold
      November 12, 2017

      Hi Paul,

      Thanks for your inquiry

      If you’d like to apply for loans.com.au’s Offset Variable Home Loan, you may visit their website to proceed with your application and get in touch with a loan specialist.

      Will this be your first home? If so, may first check if you are eligible for the FHOG Scheme. After that you may now look for home loan options from different banks and companies. To help you, please enter the amount you’d like to borrow, and your preferred term then use the “Advanced Search” filter on top of the. When you are ready, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with the application or get in touch with their representatives for further inquiries you may have.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions. Alternatively, you can speak to a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options.

      Hope this information helps

      Cheers,
      Arnold

      Reply
    Default Gravatar
    Mamun
    September 30, 2017

    Buying a investment property in Brisbane. Need help asap.
    I’ve already sale of contract and all docs ready.

    Reply
      Default Gravatar
      Arnold
      October 2, 2017

      Hi Mamun,

      Thanks for your inquiry.

      If you are looking to apply for an offset variable home loan with loans.com.au, you may click ‘Enquire’ or ‘Go to Site’ and you will be safely redirected to the loans.com.au homepage where you can proceed with your application or speak to their loan specialists.

      Alternatively, you can speak to a mortgage broker who can take your personal circumstance into account and offer you a range of borrowing options.

      Hope this information helps

      Cheers,
      Arnold

      Reply
    Default Gravatar
    JA
    May 9, 2017

    What is “settlement fee” and “discharge fee” (is it “closure fee”?)/
    Do you have something that other lenders call “legal fee”?

    Reply
      AvatarFinder
      Dee
      May 11, 2017

      Hi JA,

      Thanks for your question.

      Also called ‘termination’ fee, settlement fee is charged when you pay out your mortgage in full. This may also apply to the costs to payout your loan and to switch the funds to your new mortgage. As with loans.com.au, the settlement fee of $300.00 is deducted from the loan proceeds at settlement.

      Once your mortgage is paid in full, you will be required to pay discharge fees that cover the finalisation of the mortgage process and the paperwork involved in the change of title. This fee covers the administrative costs of preparing your loan discharge documents. Although loans.com.au say that there is no exit fee with this loan, when you pay out loan it will still be considered a discharge and the relevant fee will apply.

      loans.com.au Offset Variable Home Loan does not charge Lender’s Legal Fee.

      Cheers,
      Anndy

      Reply
      Default Gravatar
      JA
      May 9, 2017

      To clarify – I am looking to refinance – I presume I do not pay settlement fee? Are the only fees in my case “discharge fee”, payable whenever I either pay off the loan or take it to another bank, and “valuation fee”?

      Reply
      Default Gravatar
      Liezl
      May 12, 2017

      Hi JA,

      Thanks for your question.

      If you intend to refinance, you might still pay a settlement fee which is the cost to payout your previous lender and to switch the funds to your new mortgage. Although, sometimes this cost is absorbed by the lender and waived for customers.

      You may want to read our guide on refinancing costs to give you an idea on what other fees you may incur when refinancing your loan.

      I hope this has helped.

      Cheers,
      Liezl

      Reply
    Default Gravatar
    Eugene
    February 4, 2017

    You mentioned 15 years minimum term for repayment. If I pay earlier, is there any other hidden costs other than $300 exit fee?

    Thanks,

    Reply
      AvatarFinder
      Dee
      February 7, 2017

      Hi Eugene,

      Thanks for your question.

      On the lender’s website, they only feature the $300 settlement fee. You may directly contact loans.com.au to verify if there are other fees involved when repaying your mortgage early.

      Cheers,
      Anndy

      Reply
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