You could have complete control over your home loan funds when you choose a Macquarie Bank Line of Credit.
With the combined efforts of a fixed rate and line of credit, you have the flexibility of a line of credit but also the control of a fixed rate. The competitive interest rate fixed for up to five years could give you the time you need to get used to your new budget, while the line of credit lets you tap into the equity of your home.
If you don’t need the line of credit, the Macquarie Bank Basic Home Loan offers the same fixed rate option in a simple loan with a range of options. This could be a good starting point to consider for first-time home buyers.
- Money Magazine awarded Macquarie Bank for this home loan package in its 2014 Best of the Best awards. The Line of Credit Fixed home loan was cited as being the best line of credit loan.
Things to consider about the Macquarie Bank Line of Credit Fixed home loan
The line of credit fixed rate home loan could be an opportunity for both investors and owner occupiers to finance the purchase of their residential property. There are a range of options available allowing you to custom fit the loan to meet your needs.
There are a variety of different features offered by lending institutions whose points should be considered and compared before you make a final decision. Prioritise those that are most important to you and compare their terms between different lenders.
Features of the Macquarie Bank Line of Credit Fixed Home Loan
- Loan to value ratio (LVR). For a home loan of $600,000 or less, the value of the loan may be equal to of the value of the home. For loans that are greater than $600,000, the amount may not exceed of the value of the property.
- Loan terms. You can choose a fixed rate from one to five years, the total loan term can not be longer than .
- Repayment frequency. You choose to make your repayments fortnightly or monthly. You are also permitted to make extra repayments up to 5% of the loan amount per year. If you have money in your revolving line of credit, the repayment can be deducted from here or you can choose to make it separately.
- Split loans. You can split this loan into up to ten separate sub-accounts, choosing the terms and rates for each one individually.
- Rate lock. You can lock in your fixed rate price for up to 90 days allowing you the chance to obtain a good rate, even before your loan has been fully processed.
- Accessibility. With this loan comes a Macquarie Visa card for which you will not be charged an annual fee. You can use this card to access your revolving line of credit for free if you use an ATM owned by St. George Bank, Westpac or BankSA.
Fees you can avoid
- Application fee . There is no charge for when you apply for this loan.
- Valuation fee . The fee for obtaining the value of a property of up to $2,000,000 is waived.
- Settlement fee . You will not be charged at the settlement of your home loan line of credit.
Fees you can’t avoid
- Annual fee . There is an account management fee that is payable in two yearly instalments of $199 each. The fee will be applied to up to five different loans provided that the applications are submitted together and are for the same borrower.
- Exit fee . The borrower will be charged this fee when the borrower exits the loan.
- Legal fee . This covers the costs of the legal requirements attached to your loan.
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How to apply
If you would like to apply for this home loan, you can contact a mortgage broker or visit the Macquarie Bank website. Make sure that you are able to meet the following eligibility requirements:
- Age. You will need to be at least 18 years of age to be considered for this home loan.
- Residency. Only Australian residents and citizens can apply.
Once you have submitted this, a representative of Macquarie Bank will be in touch with you. It’s also recommended that you have the following documentation ready:
- Driver’s licence In order to fill out an application for a home loan, you will need to provide a valid driver’s license number or other form of Australian government issued identification.
- Income. Have a list ready of all of your sources of income.
- Liabilities. You will also be asked to provide information about your current liabilities. Make sure to include credit card debt and any other loans in your name.
A revolving line of credit could be a good option for someone who is just moving into a new home and needs constant access to money. Compare the options and rates you see with the Macquarie Bank loan against other lenders to see where you will get the most savings with the features that you want.