The loans.com.au Offset Variable Home Loan is a low rate home loan funded and underwritten by Firstmac, one of Australia's largest mortgage providers.
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.
|Product Name||loans.com.au Offset Variable|
|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||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 or ongoing monthly fees.
- You can make extra payments without penalties and access extra funds from the mortgage via the free redraw facility, with no minimum redraw amount
- A 100% offset account is linked to your home loan
- 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, or to refinance an existing home loan. Note that using this home loan to finance an investment comes with a higher interest rate.
Features of the loans.com.au Offset Variable Home Loan
- 100% offset account. A 100% offset account enables you to pay off your loan sooner by reducing the amount on which interest is calculated. An offset account is a regular transaction account that has a VISA Debit card with ATM access, cheque book access and internet access. 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.
- Loan to value ratio (LVR). The maximum loan to value ratio (LVR) for this loan is 90%. Borrowing more than 80% will require you to pay lenders mortgage insurance (LMI).
- Repayment options. Repayments can be made weekly, fortnightly or monthly with the Offset Variable Home Loan. Interest-only repayments are available 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 loan amount is $1,000,000 if you’re only using one asset to secure the loan (your property).
- Accessibility. You can access your account online or by phone at any time. You can manage your money from an online interface which includes your loan transactions, loan statements, redraws and bill payments. You also get a VISA debit card that is connected to your offset account and 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. You'll also receive up to five free ATM transactions a per month with an agreed list of financial institutions.
- Split your loan. You can split your loan up to five times without incurring any additional charges. Splitting your loan gives you the ability to hedge your bets against upward rate movements, while also leaving room to take advantage of a reduction in lending rates.
The Offset Variable has no application, annual or monthly fees to worry about. Below are the fees you will have to pay with this loan:
- 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.
- 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.
How to apply for this home loan
If you think the loans.com.au Offset Variable Home Loan is for you, then click 'Enquire' or 'Go to Site' and you will be safely redirected 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.