Bank of China
Discount Home Loan
Owner Occupied Variable Principal & Interest 0 Years 80% LVR
7.69%
Interest rate
7.87%
Comparison rate
Ratings
★ ★ ★ ★ ★ (1 reviews)
About Discount Home Loan
Key Features
- While it does not have the convenient that comes with an offset account, but $Discount 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
- Bank of China charge a discharge fee of $250, 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
- Bank of China Discount Home Loan does not offer tier pricing for lower LVR. With Discount Home Loan, you can borrow upto $80% LVR.
- Bank of China Discount Home Loan does not offer tier pricing for lower LVR. With Discount Home Loan, you can borrow upto $90% LVR.
Eligibility
- Interest only repayment option is not available with Bank of China Discount Home Loan for buying next home.
- Interest only repayment option is not available with Bank of China Discount Home Loan for refinance.
💡 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 Bank of China or a mortgage broker just to be sure. This information should be used as a guide only.
Other rate options for Discount Home Loan
Frequently Asked Questions
Are there costs when I exit or refinance to another lender?
Bank of China charge a discharge fee of $250, which covers the cost for removing the mortgage that has been registered on the title of your property.
Does Bank of China Discount Home Loan comes with an offset account?
No, Discount 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 Bank of China Discount Home Loan comes with an offset account?
No, Discount Home Loan does not come with an offset account. While it does not have the convenient that comes with an offset account, but $Discount 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 Bank of China Discount Home Loan?
There is upfront costs of $300 to apply for Discount Home Loan. Legal fee: $300 Discount Home Loan also comes with ongoing account fees of $190 per year. Annual fee: $190 per year
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 Bank of China or a mortgage broker just to be sure. This information should be used as a guide only.