Standard Variable Rate Home Loans
A standard variable rate home loan is one of the most popular mortgages around. For many borrowers, a standard home loan offers the right mix of features, flexibility, interest rate and fees.
This type of loan is particularly suitable if you want to make extra repayments without penalty, split your loan or access a line of credit. In return for these benefits, a standard variable rate mortgage will have a higher interest rate than a basic home loan.
- repayment flexibility
- ability to make additional repayments
- redraw facility
- split loan feature
- may offer direct deposit salary, rental or dividend income, credit/debit card and line of credit facility
- can be used for building purposes
- higher interest rates
100% Offset Home Loan/ Offset Account
These loans allow you to link your lending, with your day to day spending and allow you to reduce the overall interest payable on your home loan/loans by linking your home loan to your transaction account.
What would be the ideal situation for an offset?
In the ideal situation, your income / pay / rent / dividends would be deposited into the transaction account – you can even use it as your everyday transaction account. As home loan interest is calculated on a day-to-day basis, any money in the offset account is used to lower the balance of your home loan by the same amount – saving you in interest! In effect interest on the loan is calculated on a daily basis, but all balances in the offset account will be ‘offset’ against the quantity owing on the home loan and you just pay interest on your net balance. For example, say you have a current home loan balance of $250,000 and at the same time you have $10,000 inside the offset/transaction account, you just pay interest upon $240,000! Over the life of the loan this will save you thousands!
Your money, obviously will be working harder for you – your salary will decrease interest payments from the time it’s credited to your account. Furthermore any additional income you earn will be working for you the minute it goes in to your account – AND at the same time the funds are completely accessible for you to access as you want – typically by going online, cheque or ATM.
Who Benefits from 100% Offset Accounts?
100% offset accounts are obtainable to anybody irrespective of the quantity of cash they want to borrow. There are no hidden or account keeping fees related with this kind of home loan therefore it won’t necessarily cost you extra. As a rule we find dual income families who have high month-to-month expenses usually benefit the most from offset accounts as they require the most funds obtainable for their daily spending.
Intercorp Financial Strategies is one of Australia’s most innovative mortgage brokers, the statement “A unique personal financial experience” reflects our clients experience when dealing with our company. We have developed a streamlined process for home loan and finance applications that will save you money and time on your refinance or purchase home loan needs. We will look at your entire financial portfolio, and can also assist with your insurance, financial planning and accounting needs if required – but first and foremost we are experts at getting your home loan approved for you.
Intercorp Financial Strategies mortgage brokers have access to sophisticated software through their association with Choice Aggregation Services which will assist you in selecting the most appropriate home loan. We have access to over 30 lenders and 300 products so why waste time researching on the internet when you could get in touch with us and allow us to do the leg work for you.