Looking for a home loan that combines the security of a fixed rate with the convenience of flexible repayment options? Meet the Online Home Loans Horizon Fixed Rate Loan.
For some borrowers, the security of a fixed interest rate on their home loan is an absolute must. Knowing exactly how much your repayments will be and that the rate won’t be affected by changes to the RBA’s official cash rate provides peace of mind and allows you to budget accordingly.
The Online Home Loans Horizon Fixed Rate Loan combines the security of a competitive fixed rate with a number of flexible features, including your choice of repayment options and a free redraw facility.
|Product Name||Online Home Loans Horizon Fixed|
|Interest Rate Type||Fixed|
|Interest Rate (p.a.)||4.34%|
|Comp Rate^ (p.a.)||4.10%|
|Minimum Loan Amount||$150,000|
|Maximum Loan Amount||$1,500,000|
|Minimum Loan Term||15 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||No|
|Suitable for Investment||Yes|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$299 p.a.|
|Early Termination Fee||$608|
- Free redraw facility
- Split loan facilities available
- Borrow up to $1500000
- Application fee of $275
- Annual fee of $299
Who is Online Home Loans?
Online Home Loans is a challenger brand backed by leading non-bank lender Resimac. Because Online Home Loans is web-based and doesn't have physical branches, it has lower overheads and can pass on competitive rates to you.
Details to consider about the Online Home Loans Horizon Fixed Rate Loan
The Online Home Loans Horizon Fixed Rate Loan is available to owner-occupiers and investors who want to purchase residential property. A full-doc loan, it allows you to lock in a fixed rate and enjoy fixed repayment amounts for three years. Once the fixed-rate period ends, the loan reverts to an Online Home Loans Horizon Variable Rate Loan.
The loan has a maximum LVR of 95%, although some rates are only available with an LVR of 80%. Investors also have the freedom to choose interest-only repayments over principal and interest repayments for a limited period if they wish.
Features of the Online Home Loans Horizon Fixed Rate Loan
The Online Home Loans Horizon Fixed Rate Loan offers a competitive fixed interest rate and an extensive range of other flexible features, including:
- Maximum LVR. The Online Home Loans Horizon Fixed Rate Loan allows some borrowers to borrow up to 95% LVR, remembering that loans of more than 80% LVR may have different rates and will also attract the extra cost of lender’s mortgage insurance.
- Loan amount. You can borrow amounts between $150,000 and $1,500,000 with this loan.
- Loan term. You can lock in a competitive fixed interest rate with this loan for three years, ensuring the security of guaranteed repayment amounts. Once this three years is up, the loan reverts to the Horizon Variable Rate Loan.
- Repayment options. You can choose from three repayment schedules: weekly, fortnightly or monthly.
- Free redraw facility. Although there are no additional repayments allowed on a fixed-rate loan, you can make additional repayments on the variable portion of your loan. Those funds can then be accessed through the loan’s free redraw facility.
- Loan split. The Online Home Loans Horizon Fixed Rate Loan also features a loan split facility that allows you to split your loan up to six times for free.
- Application fee: $275. This fee must be paid to cover the administrative costs incurred while preparing and establishing your loan.
- Annual service fee: $299. The Online Home Loans Horizon Fixed Rate Loan includes this ongoing annual service charge.
- Discharge fee: $308. You will need to pay this exit fee once you have paid off your loan.
How to apply for the Online Home Loans Horizon Fixed Rate Loan
If the Online Home Loans Horizon Fixed Rate Loan sounds like it could be the ideal loan for you, click on one of the “Apply now” links on this page. This will take you to the Online Home Loans website, where you can read up on the full features of this loan and even begin the online application process.
However, you will need to satisfy a few criteria in order to be eligible for this loan:
- Age. You must be at least 18 years old.
- Residency. You must be a permanent Australian resident.
- Loan purpose. The Online Home Loans Horizon Fixed Rate Loan is only available to owner-occupiers and investors purchasing an existing residential property.
As part of your application, you will be required to provide a range of personal and financial information to the lender. This will help with its assessment of your repayment capacity. You will be asked to supply:
- Personal details. These include your name, address, date of birth and contact details.
- Proof of ID. You’ll need to supply a valid form of photo identification, for example a driver’s licence.
- Income details. The lender will request proof of employment and evidence showing your income, such as pay slips and bank statements.
- Assets and liabilities. You’ll need to report any liabilities you have, such as credit card debt, as well as any assets you own.
- Property details. The lender will also require details of the property you plan to buy so it can organise an independent valuation of the property.
The Online Home Loans Horizon Fixed Rate Loan is definitely worth closer inspection if you want the security of a fixed interest rate. Compare it with a range of other fixed-rate loans before making a decision on where to obtain finance to buy a home.