A fixed rate loan that lets borrowers make additional repayments on their loan
It's not often that a mortgage with a fixed rate of interest lets borrowers make additional repayments without incurring a penalty. But the Aussie Optimizer Fixed Rate loan lets you do just that.
This loan is fixed for a period and Aussie also offer a range of fixed rate loans, from one to five years. If you're looking for a variable rate of interest, Aussie also offer the Optimizer Standard Variable Rate Home Loan.
Aussie Optimizer Standard Fixed Rate loan Overview
|Product Name||Aussie Optimizer Fixed Rate Home Loan|
|Interest Rate Type||Fixed|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$100,000|
|Maximum Loan Amount||$5,000,000|
|Minimum Loan Term||1 year|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||No|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$363|
|Ongoing Fees||$0 p.a.|
|Early Termination Fee||$0|
- There is $0 application fee.
- There is $0 ongoing service fees.
- Pay additional payments without penalty during the fixed term.
- There is a $100 settlement fee.
- No redraw facility during the fixed term.
- A $400 discharge fee applies when you close your home loan account.
Things to consider about this loan
The Aussie Optimizer Fixed Rate Home Loan has a maximum loan size of $5,000,000 - any loan amount over this will be assessed on a case by case basis. Aussie will consider things like the size of the deposit and the loan to value ratio (LVR) when judging an applicant who wishes to borrow over the maximum amount. The minimum loan size is $100,000.
At the end of the fixed rate loan term, this loan will revert to the Aussie Basic Variable Rate Home Loan. However, there are break costs if you choose to end the fixed rate term early. This loan can be used for residential purposes only, if you're looking at constructing a dwelling, you may want to consider loans more suitable for construction.
Aussie Optimizer Standard Year Fixed Rate Home Loan features
- Loan terms: This loan is available for a period of up to 30 years. Although this product is set at a fixed rate of interest, once the fixed interest period has finished, borrowers have the option of locking in for another fixed period, for one to five years or letting the loan revert to the standard variable rate.
- LVR: The maximum loan to value ratio for this loan is 80%. This means you can borrow up to 80% of the value of the property you wish to purchase. If you're willing to pay lender's mortgage insurance, you can borrow up to 95% LVR. This amount includes LMI capitalisation. An LVR of 95% makes this a great loan for first home buyers who are looking to break into the property market, but may not have the deposit required by some lenders.
- Repayment flexibility: This loan offers borrowers flexibility in the way they pay their loan and how often they choose to pay it. Choose between principal and interest or interest-only repayments. Interest-only repayments are a great way to cut down on mortgage repayments but there are limits to how long interest-only payments are accepted - interest-only repayments can be made for a maximum period of five years.
- Repayment frequency: Borrowers can also choose their repayment frequency, whether it be fortnightly or monthly. Payments can be made via online facilities and direct debit.
- Additional repayments. Value adding features like the ability to make additional repayments during the fixed term without penalty also offers flexibility to borrowers. Additional repayments are a great way to get ahead on your home loan and often incur a penalty with made during the fixed rate period, borrowers are free to make additional repayments up to 5% of the total value of the loan without incurring additional charges. It is worth mentioning that this loan does not offer a redraw facility. Any repayments made onto the loan can not be redrawn during the fixed loan period.
- Account access: Borrowers can access their account over the internet or via telephone. Accessing your account through these channels
Aussie Optimizer Standard Fixed Rate Home Loan fees
There are fees associated with this loan that the borrower can and can't avoid.
Fees you can avoid:
- Ongoing fees: $0. Once your loan has been set up, there are no ongoing or account maintenance fees payable.
- Break costs: if you choose to break your fixed rate term early, break costs will apply.
Fees you can't avoid:
- Application fee: $0. This is a fee charges for the processing of your application.
- Settlement fee: $100. This is charged when your loan has been settled.
- Solicitors fees and disbursements: These are fees to cover solicitor's costs in addition to any fees a solicitor has incurred while processing your case.
- Discharge fee: $400. This is a fee payable when you exit your mortgage contract at the end of the loan period.
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Applying for this loan
If you are considering this loan and want to take steps to find out more information from an Aussie Mortgage Specialist, click the enquire button to be securely redirected to the Aussie Mortgage Broking Service. From here, you will need nothing more than your basic personal information to arrange a time for an Aussie mortgage broker to contact you, discuss your needs and how this is suited to a Aussie loan.
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Aussie Optimizer Standard Fixed Rate Home Loan Interest Rate History vs RBA Cash Rate Graph
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