Arab Bank Australia The Basics Home Loan - Owner Occupied - Variable

Ratings

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About The Basics Home Loan

Key Features

While it does not have the convenient that comes with an offset account, but $The Basics Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.

Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.

LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.

Fees & Costs

Arab Bank Australia charge a discharge fee of $115, which covers the cost for removing the mortgage that has been registered on the title of your property.
Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.

Borrowing Limits

An LVR of 95% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.

💡 Tip: To get approved for an interest only home loan you need to have a strong enough income to afford principal and interest (P&I) repayments once your interest only term expires. Sometimes extending your interest only period can be tough and getting approved for a P&I refinance is a lot easier.

IMPORTANT:Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Arab Bank Australia or a mortgage broker just to be sure. This information should be used as a guide only.

Other rate options for The Basics Home Loan

Refinance Variable · Interest Only 0 Years · 70% LVR

5.85%

Refinance Variable · Interest Only 0 Years · 80% LVR

5.95%

Refinance Variable · Principal & Interest 0 Years · 60% LVR

5.75%

Refinance Variable · Principal & Interest 0 Years · 70% LVR

5.85%

Refinance Variable · Principal & Interest 0 Years · 80% LVR

5.95%

Investment Variable · Interest Only 0 Years · 60% LVR

6.20%

Investment Variable · Interest Only 0 Years · 70% LVR

6.25%

Investment Variable · Interest Only 0 Years · 80% LVR

6.30%

Investment Variable · Principal & Interest 0 Years · 60% LVR

6.20%

Investment Variable · Principal & Interest 0 Years · 70% LVR

6.25%

Investment Variable · Principal & Interest 0 Years · 80% LVR

6.30%

Owner Occupied Variable · Interest Only 0 Years · 60% LVR

5.75%

Frequently Asked Questions

Are there costs when I exit or refinance to another lender?

Arab Bank Australia charge a discharge fee of $115, which covers the cost for removing the mortgage that has been registered on the title of your property.

Does Arab Bank Australia The Basics Home Loan comes with an offset account?

No, The Basics Home Loan does not come with an offset account. Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.

Does Arab Bank Australia The Basics Home Loan comes with an offset account?

No, The Basics Home Loan does not come with an offset account. While it does not have the convenient that comes with an offset account, but $The Basics Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.

What are the costs to apply for Arab Bank Australia The Basics Home Loan?

There is upfront costs of $600 to apply for The Basics Home Loan. Application fee: $600 The Basics Home Loan also comes with ongoing account fees of $96 per year. Monthly fee: $8 per month

Fees

Application fee

Important Information

Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Arab Bank Australia or a mortgage broker just to be sure. This information should be used as a guide only.