Rates from 1.84% (Comparison rate 3.73%)

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Definitions

LMI-Lenders Mortgage Insurance is charged by a lender to insure the loan if goes into default. This fee normally only applies to lending above 80% of property value.

LVR -Lending Valuation Ratio is the measure lenders apply as lending value compared to the secured property value.

Comparison Rate is a requirement of the government to show the actual rate after fees charged upfront and ongoing fees by lenders.
Warning This is only relevant for loans with costs up to $150,000.00. So as the loan increases the comparison rate will lower.

Offset Account is a handy feature with most lenders that allow any savings to go into a separate account connected to your loan and any money in there will reduce the loan balance for the interest charge. So, if you have a loan of $100,000.00 and an offset account of $10,000.00 you will be charged interest on a $90,000.00 balance assuming a 100% Offset account used. Some banks allow this against Fixed rates.

Fixed Rates You may choose a fixed rate for a predetermined time says 2 or 3 years. This gives you the certainty of payments and prevents fluctuations of potential interest rate rises. Warning, You may incur expensive exit fees if you break the term of the loan either by selling or refinancing. You are also limited to how much extra funds you may contribute to the loan and this too may incur a default exit fee.

Variable Rates are the standards offer by most lenders. It allows full flexibility of early repayments and redraws if overpaid from your normal payment as advised in your lender terms.

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