Aussie Select Basic Fixed Rate Home Loan
Enjoy a fixed rate home loan with the flexibility to make extra repayments
When you fix your home loan you know your repayments won't change. It's a great way to gain control over your household budget. A fixed rate home loan can be an option to consider for people who are looking for certainty with their mortgage repayments.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).
If you're searching for a low-rate loan and you have a small deposit saved, this product could be a great fit for you. You can apply for this loan with as little as 5% deposit saved; LMI applies for all loans with a deposit of less than 20%, which can be paid either upfront or may be added to your loan, depending on your circumstances. This is a basic loan, which means there are no extra features like offset accounts or redraw, however it comes with no fees. You can also make a certain amount of extra repayments each year, with no penalty.
About this loan
What are the features and benefits of the Aussie Select Basic Fixed Rate Home Loan?
The Aussie Select Basic Fixed Rate Home Loan offers several features to borrowers including:
- Loan to Value Ratio (LVR): There's a maximum LVR of 80% - 95%, with Lender's Mortgage Insurance (LMI) payable for amounts above 80%.
- Loan Term: This loan can be taken out for a term of up to 30 years, giving you the flexibility to pay off your loan at a pace which suits you.
- Minimum amount: This loan can be taken out for a minimum amount of $100,000 up to amounts of $5,000,000, subject to LVR and lending criteria.
- Repayment flexibility. You can set your payments to principal and interest repayments, or you can choose the interest-only option. The maximum interest-only period allowed is five years. Your payment frequency can also be changed from the standard monthly payments over to fortnightly repayments if this suits you better.
- Extra repayments. You are able to make extra payments that are over and above your regular minimum repayment amounts. Be aware that your additional payments are limited to 5% of the loan balance each year before penalties may be charged. For example, if your loan balance is $300,000 you can make an additional $15,000 in payments on top of your normal minimum payment amounts each year without being penalised.
Purposes you could use the Aussie Select Basic Fixed Rate Home Loan for
The Aussie Select Basic Fixed Rate Home Loan is suitable for personal residential purposes and for investment use. You're able to purchase an existing home or refinance a current mortgage from another lender. This loan however isn't suitable for constructing a new dwelling. You can borrow up 95% of the property value with this loan. However, any loan amount that exceeds 80% of the property value may incur a Lender's Mortgage Insurance fee.
What fees and charges come with this loan?
- Ongoing account keeping fees: $0. There aren't any ongoing account keeping fees with this loan.
- Application fee: $0. There is also no application fee with this loan.
- Valuation fee: The first valuation fee up to $300 is free with this loan.
Please be advised that additional break costs may apply if you repay your entire home loan balance during the fixed term.
How to apply
If you're ready to apply for this home loan, you can simply click on the 'Enquire Now' button on this page. This will open a form where you can enter your contact information. A local Aussie broker will get in contact with you within one business day.
Applications are subject to approval. Conditions, fees and charges apply. Please note that you need to be an Australian citizen or permanent resident to apply.