Take advantage of the benefits of both a variable rate and fixed rate loan with a split loan
Splitting a home loan means some of your loan is calculated using a fixed rate and some is calculated using a variable rate. The Homeloans Ultra Plus Combo Home Loans are split rate loans which lets you fix up to 50% of your loan and discounts this fixed rate portion by 0.22% p.a.
This means a part of your loan will be locked in for one, two or three years with no chance of your repayments increasing even if interest rates rise. The other part of your loan will be calculated using a variable interest rate, so it will fluctuate as rates rise and fall. If rates fall, this part of the loan will see you save money on interest. This means part of your loan would have a standard variable rate while the remaining portion would be fixed for a period of time.
Things to consider about the Homeloans Ultra Plus Combo Home Loans
This loan is available as a full documentation loan, so you’ll need to supply the full number of requested documents including employment and income information. Homeloans offers a range of low doc loans for self-employed borrowers and these have different conditions and requirements. This loan is available for those wishing to purchase a home, investment property or land. It can also be used to combine your debts into one loan, refinance or get access to equity. You can also use it to construct a property, although this will bring with it a $300 fee to get access to the ‘drawdown’ facility, which enables you to progressively pay a builder as they complete your property.
Features of the Homeloans Ultra Plus Combo Home Loans
- Maximum LVR: The Ultra Plus Combo Home Loan allows you to borrow up to 90% of a property’s value. You can borrow more than of a property’s value however this will sacrifice 0.10% p.a of the discount you receive. As mentioned previously this loan offers a 0.22% p.a discount. 0.10% p.a of this is applied for having an LVR of 75% or below. There’s also another condition to receive this part of the discount - you must borrow over $200,000.
- Pay off your loan sooner: You can make unlimited additional repayments on this loan, but they can only be made on the variable rate of the loan.
- Redraw: You can then withdraw these additional payments you make on your loan at any time through the phone, internet, direct credit, ATM or EFTPOS. This is handy if you need extra funds to pay for anything unscheduled.
- Loan portability: If you sell your home and then move to another property you don’t need to refinance with the Ultra Plus 75 Combo Home Loan. This means you’ll avoid paying break costs on any fixed rate portions and be able to save on loan stamp duty during the transfer.
- Make repayments when you want: Ultra Plus Combo Home Loans allow you to make weekly, fortnightly or monthly payments. This means you can fit your repayments into your income cycle. Repayments can be made directly via salary crediting, BPAY or direct debit.
Fees you can avoid:
- Monthly fees. $8 - $20. This fee covers the servicing of your home loan each month and isn’t charged by Homeloans.
Fees you can’t avoid:
- Annual fees - This is a fee charged for taking out a ‘Plus’ product with Homeloans and is charged in exchange for the discount you receive.
- Settlement/ application fee. . This covers both the cost of transferring funds from your lender to you and the general set-up costs of this loan.
- Valuation fee- Approximately . When you purchase a home your lender wants to know how much it’s worth before they fund you. This helps them establish how much they should lend you.
How to enquire about the Homeloans Ultra Plus Combo home Loans
If you feel the Ultra Plus Combo home loans could be the right loan for you, you can find out more by following a few steps.
- Click on the ‘find out more’, ‘enquire’ or ‘details’ buttons on the right side or bottom of the page.
- Fill out the form with your contact details and loan amount.
- Wait until a Homeloans mortgage expert calls you back to discuss your home loan options.
Split rate loans can be a great way to experience the benefits of both types of home loans and receiving a discount just for doing so means you’ll save on repayments for the life of your loan. Click ‘enquire’ now to find out more.