loans.com.au is backed by Firstmac - one of Australia's largest and most trusted mortgage providers.
The loans.com.au Offset Variable Home Loan is a low rate home loan funded and underwritten by Firstmac. Firstmac has over 30 years of home loan experience and $7.5 billion in mortgages.
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.
Read on for a review of the loan and its features, fees and information about loans.com.au.
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For a limited time, if you package your home loans together for both your home and investment, you'll be able to enjoy a low competitive rate for both.
Terms and conditions apply.
|Product Name||loans.com.au Offset Variable|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$50,000|
|Maximum Loan Amount||$2,000,000|
|Minimum Loan Term||15 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||90%|
|Mortgage Offset Account||Yes|
|Mortgage 100% Offset||Yes|
|Loan Redraw Facility||Yes|
|Split Loan Facility||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||$0|
|Ongoing Fees||$0 p.a.|
- There is $0 application fee
- There is $0 ongoing monthly fee
- You can make extra payments without penalties and access extra funds from the mortgage via the free redraw facility, with no minimum redraw amount
- You can link a 100% offset account to your home loan
- You can split your loan up to five times for free
- 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
Things to consider about the Offset Variable Home Loan
This home loan can be used to buy residential property as a home or investment. Note that using this home loan to finance an investment comes with a higher interest rate. Read on to find out everything about this loan.
Features of the loans.com.au Offset Variable Home Loan
- 100% offset account. A 100% offset account for a home loan is a useful feature that enables you to pay off your loan sooner. An offset account is a regular transaction account that has an Visa Debit card with ATM access, cheque book access and internet access that is linked to your home loan when your loan is set up and compensates for a portion of your principal. 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. The longer the loan term, the less your repayments will be, but you could be charged more interest over the life of the loan.
- Loan to value ratio (LVR). The maximum loan to value ratio (LVR) for this loan is 90%, although keep in mind that borrowing greater than 80% will require you to pay Lender's Mortgage Insurance.
- Repayment options. Repayments can be made either weekly, fortnightly or monthly with the Offset Variable Home Loan. Choosing how often you repay your loan can save you interest in the long run, especially if you make bi-monthly repayments. Interest-only repayments are available with this loan 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 threshold 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, 24 hours a day and 7 days a week. You can manage your money from an online interface including your loan transactions, loan statements, redraws and bill payments. You also get a VISA - issued debit card that is connected to your redraw offset that has the additional security of Verified by VISA protection. Borrowers can access these funds via the CueCard ATM network which includes Westpac, St.George, BankSA and Bank of Melbourne. There is also up to five free ATM transactions a per month with an agreed list of financial institutions.
- RP Data Report. When you enquire about a home loan with loans.com.au, you will receive a complimentary RP Data Report. These reports provide details about the residential property market and provide potential homeowners with the tools they need to make an informed decision. The report includes things like property photos, details, comparable properties, mapping and valuations.
- Split your loan. You can split your loan up to five times without incurring any additional charges. Most people opt to go for a standard 50/50 split between standard variable and fixed rates of interest, but loans.com.au offer borrowers the ability to split their interest calculations into fifths. This would be ideal if there were a large group investing together and they all wished to have their portion of the loan subject to different rates of interest accrual. Splitting your loan gives borrowers the ability to hedge their bets against negative rate movements, while also leaving room to take advantage of a reduction in lending rates.
Why you can trust loans.com.au
- They're backed by Australian mortgage stalwart Firstmac, which has more than 30 years of experience and over $7 billion in mortgages managed
- They must comply with ASIC, the National Consumer Credit Protection Act, Australian consumer law, privacy laws and the ePayments code
- They're a full member of the Mortgage & Finance Association of Australia (MFAA)
- Their loan serviceability abilities are rated by international credit agency Standard & Poor's as being 'strong', the highest possible rating.
Fees you can avoid
- Application Fee: $0.
- Annual Fee: $0.
- Monthly Fee: There's no monthly fee with this loan.
- 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.
Fees you can't avoid
- 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.
Prices for the following charges vary depending on the property
- Government fees and charges: At cost.
- Title insurance: At cost.
- Title search, bank cheques & agent fee: At cost.
- Discharge outlays: At cost.
These fees vary depending on the property and can be paid either upfront or can be deducted from the total amount you wish to borrow. For instance, if you wish to borrow $200,000 and you must pay $1,000 in one-off fees and charges, you will be able to borrow $199,000. If you really need the whole $200,000 then you will have to borrow $201,000. The above example is indicative only. Speak to a home loan specialist to get a better idea of the types of fees and charges associated with your loan and property.
Are there any hidden fees?
There are no hidden fees charged by loans.com.au for this home loan, although there are some more minor and external costs you will want to factor in. These include government fees and fees from your existing lender if you're refinancing.
loans.com.au states that the general government costs for refinancing are approximately $320, which cover the cost of having your mortgage title released and re-registered.
There's also a $10 fee charged if you choose to order statements from loans.com.au.
Finally, note that the valuation fee starts at $220 for properties valued up to $1 million. This means you could pay more depending on the value of your property and where it's located. Also keep in mind that this fee is non-refundable.
Who owns loans.com.au?
loans.com.au is a 100% Australian owned private mortgage company and all of its funds are underwritten by Firstmac. Firstmac are also 100% Australian owned and have over 30 years of experience along with $7.5 billion in managed mortgages, showing their wealth of experience and security.
loans.com.au currently doesn't have a mobile app, but does have a responsive website which will display on all devices.
You can check your application status on their onTrack platform, which was previously known as Loan Tracker.
An app is said to be in development.
This loan allows you to split rates so that a portion of it has a fixed rate.
loans.com.au also has a separate loan which allows you to lock in fixed rates between one and three years.
How to apply for this home loan
If you think the loans.com.au Offset Variable Home Loan is for you then clicking 'Enquire' or 'Go to Site' will safely redirect you 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.