Don't pay for any of the features you won't use with the Essentials Home Loan.
The loans.com.au Essentials Home Loan is a standard, no-frills home loan that only provides the features you need. This means you don't need worry about paying for features you won't use.
With a competitive interest rate and redraw facility, it could be the loan for you if you don't mind working with online lender.
|Product Name||loans.com.au Essentials|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$50,000|
|Maximum Loan Amount||$1,000,000|
|Minimum Loan Term||15 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest|
|Lender's Legal Fee||$0|
|Ongoing Fees||$0 p.a.|
- No monthly or application fees.
- Unlimited additional repayments and a redraw facility.
- Interest only for up to 5 years for investors.
- No offset account.
- Valuation fee of $220.
- $300 settlement fee.
What should I consider about this loan?
loans.com.au is an 100% online lender. While this means less overhead costs (so the savings are passed onto their customers), it also means that there are no branches and face to face communication. Communication is conducted mainly on the phone and online.
This loan is available for purchasing or refinancing your home. Both owner occupiers and investors are eligible, investors can also opt for interest only repayments for a period. There is no offset account offered for this product, so there is no linked Visa Debit card. A rate lock is also not available.
What are the features and benefits of the loans.com.au Essentials Home Loan?
The Essentials Home Loan is lighter on features so you benefit from a lower rate, but it still comes with a few key features which can help you pay it off sooner and manage it easily.
- Extra repayments. You can put as much extra cash as you like towards the Essentials Home Loan. This is handy if you come across any bonuses at work or any tax refunds, and can help you pay your loan off sooner.
- Redraw facility. If you find that you need to access extra repayments you've made in the past, you can do this through the redraw facility. Unlike many other loans, there's no minimum redraw amount, and it's free to redraw. This gives you the flexibility to put as much extra money as you want on your home loan without having to worry about how hard it'll be to access it if need be.
- Loan amounts. You can borrow from $50,000 to $1,000,000, so this loan can be used for a variety of properties at different price points.
- Loan to value ratio (LVR). You can borrow up to 80% of the property's value with this loan. The value is determined by an independent valuer hired by loans.com.au and not the price that you have paid for it. This means you'll need at least a 20% deposit to qualify for this loan.
- Repayments. Principal and interest repayments are available with this loan. Interest-only repayments are available for investors for up to five years.
- Split loan facility. You get up to 5 free splits or sub-accounts with this product. This means you can split this loan and take advantage of the other loans on offer from loans.com.au. Note that the Offset Variable is not available for this facility.
Loans.com.au is an Australian owned and operated company. As a certified lender, they must adhere to ASIC laws and legal requirements. Loans.com.au customers are protected under the National Consumer Credit Protection Act (NCCP).
Loans.com.au are underwritten by Firstmac, one of the largest financial services organisations in Australia. Firstmac have over 35 years of experience in the lending industry and has issued approximately $14 billion in mortgage bonds.
Loans.com.au is also a full member of the Mortgage & Finance Association of Australia (MFAA), and have a 'strong' rating (the best possible) from Standard & Poor's for their loan serviceability abilities.
What are the fees and charges?
Fees you can avoid
- Application fee, $0. At the moment loans.com.au does not charge an application fee for this loan.
- Monthly fee, $0. You won't need worry about ongoing, monthly or annual fees for this loan.
- Early discharge fee, . This fee is only payable if the loan is paid out early before the agreed loan term.
- Government charges, $Varies. Depending on your borrowing situation, you may be eligible for a concession or exemption.
Fees you can't avoid
- Settlement fee, $300. This fee covers the cost of setting up your accounts once the loan is approved and established.
- Valuation fee, $220 or at cost. This fee is charged to cover the cost of sending an valuer to the property that is to be held as security to estimate its value.
How do I apply or find out more information?
If you would like to find out more information, apply, or just speak to someone about the loans.com.au Essentials home loan, please click on 'go to site' to be taken to loans.com.au's enquiry page.
You'll be taken to a page that is similar to the one that is pictured, where you can enter a few of your details and a loans.com.au consultant will be in touch with you at a time that suits you.
This enquiry is obligation-free and does not appear on your credit file.
What can I expect during the loan process?
The below diagram is courtesy of loans.com.au and represents the loan application process after you contact them.