People's Choice

About Home Loan Package Standard

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

• 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.
• Home Loan Package Standard also comes with ongoing account fees of $395 per year.
• People's Choice charge a discharge fee of $350, which covers the cost for removing the mortgage that has been registered on the title of your property.
• There is no upfront costs to apply for Home Loan Package Standard, 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.

Eligibility

• Interest only repayment option is not available with People's Choice Home Loan Package Standard for buying next home.
• Interest only repayment option is not available with People's Choice Home Loan Package Standard for refinance.