Get a low variable as well as no application or ongoing fees for when you just want a basic home loan.
Wealth management services company Yellow Brick Road has added on top of their Empower Range of home loan products - the Rate Smasher Home Loan. This loan is a ‘no-frills' loan for those wanting the basic features of a home loan without paying for any extra benefits that they do not need.
The loan features flexible options with unlimited repayments available and also the option to switch to a fixed Empower Range loan. Owner occupier borrowers looking to refinance or take out their first mortgage can benefit from no account management or application fees as well as the flexibility and accessibility on offer.
|Product Name||Yellow Brick Road Rate Smasher Home Loan|
|Interest Rate Type||Variable|
|Interest Rate (p.a.)||3.82%|
|Comp Rate^ (p.a.)||3.82%|
|Minimum Loan Amount||$100,000|
|Maximum Loan Amount||$750,000|
|Minimum Loan Term||1 year|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||70%|
|Mortgage Offset Account||No|
|Loan Redraw Facility||Yes|
|Fixed Interest Option||No|
|Suitable for Investment||No|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$330|
|Ongoing Fees||$0 p.a.|
- $0 application fee
- $0 ongoing fees
- Flexible repayment options
- No offset account
- $400 discharge fee
- Low maximum Loan-to-Value Ratio
What should you consider about the Yellow Brick Road Rate Smasher Home Loan.
This loan is a good option for people who want a home loan without having to pay for additional features and is suitable for owner occupiers looking to purchase or refinance. It is not available for construction or investment purposes. There is a maximum Loan-to-Value Ratio of 70% which means you will need 30% deposit and there is no guarantee option.
Features of the Yellow Brick Road Rate Smasher Home Loan.
The Rate Smasher loan is a basic loan, but it still has some standout features which make it a competitive option.
- Maximum loan amount. You can borrow up to $750,000 with this loan and a minimum of $100,000.
- Loan term. You can have your loan changed from the standard 30 years after settlement of your loan with approval from your Yellow Brick Road adviser.
- Loan-to-Value Ratio. It should be noted that this loan is only available for those looking to borrow no more than 70% of the property value.
- Repayment flexibility. Yellow Brick Road offers flexible payment options, with borrowers have the option to make payments via Direct Debit or Salary Credit. You can also make unlimited additional repayments with no fees and redraw facilities available on variable rate accounts.
- Account access. You can have 24/7 access to your loan online or over the phone.
- Fees. This loan has no ongoing monthly or annual account management fees which can save you a considerable amount of money over the life of your loan.
- Option to switch. Borrowers have the option to switch to a fixed rate loan from the Empower Range.
This loan features limited fees and charges which make it a viable option for borrowers to consider. Here are the fees of the Rate Smasher loan, some that you can avoid and some that you can't.
Fee you can avoid
- Application fee: $0.
- Ongoing fees: $0.
- Valuation fee: $0 for single properties.
Fees you can't avoid
- Documentation fee: $330 + GST
- Mortgage discharge fee: $400
Steps on how to apply for the Yellow Brick Road Rate Smasher Home Loan.
- Follow the secure link on this page to Yellow Brick Road's website and fill out their application form. You will need to provide personal details, contact information, the purpose of your loan and your approximate gross annual household income.
- A Yellow Brick Road wealth manager will get in contact and set up an appointment with you.
- If you do not have a property in mind yet then at this stage you may receive pre-approval which will allow you start looking for a property.
- If you have a property in mind and have been approved for a loan they will then process the application and may give you a formal loan offer.
- Once you have formal approval you can sign all the documents and settle the loan.
To be eligible for the Rate Smasher home loan you need to meet the following criteria:
- If the purpose of the loan is for an owner-occupied property
- The loan is used for a purchase or refinance
- No debt consolidation
- PAYG applicants need a minimum employment term of 12 months
- Self-employed applicants need a minimum employment term of 2 years
When comparing loans you should keep in mind all associated fees and charges in order to determine the value of the loan but if your looking for a simple loan then the Yellow Brick Road Rate Smasher Home Loan is one you should include in your research for a home loan.