Community First Bank

About Accelerator Packaged

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.

Unlike in the US, there are no lenders in Australia that offer 20 or 30 year fixed rates for standard residential home loans. Community First Bank Accelerator Packaged offers fixed loan terms between 1 - 3 years.

Fees & Costs

• A 100% offset account is an account linked to your home loan where you can park your savings and spare cash to reduce the interest you pay. Then, when interest is calculated on your home loan, the balance in your offset account is deducted from the loan amount owing, and interest is only charged on what remains.
• Community First Bank charge a discharge fee of $300, which covers the cost for removing the mortgage that has been registered on the title of your property.
• Community First Bank charge a discharge fee of $696, which covers the cost for removing the mortgage that has been registered on the title of your property.
• Community First Bank may also charge you a fixed-rate break cost if you refinance out of Accelerator Packaged or sell your house before the fixed term ends. It can cost thousands of dollars, and the advantages of breaking the fixed loan won't always outweigh the disadvantages.
• Selling the property or refinance during the fixed rate term can trigger hefty fees for breaking a fixed rate contract, and fixed rate loans tend to have restrictions on making extra repayments. Before you lock your rate in, you need to be sure that a fixed rate home loan is suitable for your situation.
• There is no upfront costs to apply for Accelerator Packaged, but it comes with ongoing account fees of $395 per year.

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.
• Community First Bank Accelerator Packaged does not offer tier pricing for lower LVR. With Accelerator Packaged, you can borrow upto $95% LVR.

Eligibility

• Interest only repayment option is not available with Community First Bank Accelerator Packaged for buying next home.
• Interest only repayment option is not available with Community First Bank Accelerator Packaged for refinance.