Firstmac

About Basic Home Loan

Key Features

• While it does not have the convenient that comes with an offset account, but $Basic 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

• Firstmac charge a discharge fee of $300, 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.
• There is upfront costs of $720 to apply for Basic Home Loan, with no ongoing account keeping fees.
• There is upfront costs of $721 to apply for Basic Home Loan, with no ongoing account keeping fees.

Borrowing Limits

• An LVR of 90% 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.

Eligibility

• Interest only repayment option is not available with Firstmac Basic Home Loan for buying next home.
• Interest only repayment option is not available with Firstmac Basic Home Loan for refinance.