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| Can I refinance my loan which is with another lender? |
Yes. It's simply a matter of talking to us. Whether it be for consolidating debt or simply wanting to lower your repayments with our great rates, we can organise things for you. If you’d like to make the switch today please contact us.
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| How much can I borrow? |
Depending on your income and what you’re buying, you may be able to borrow up to 100% of the purchase price. You can use our Borrowing Power Calculator to receive an indicative borrowing amount.
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| What costs are involved in buying a property? |
You’ll need to set aside funds for government stamp duty, building and pest inspections of the property to ensure it’s sound, plus legal costs and depending on the level you are borrowing you may need to account for mortgage insurance.
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| Is the loan with the lowest interest rate the best? |
It depends on your needs. Loans with slightly higher interest rates generally offer more flexibility and features that may be worth paying for, for example, free redraw.
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| What happens if my interest rate goes up or down? |
If you have a variable rate loan and your rate goes up or down, we will recalculate your minimum repayment based on the new rate. We will write to you to advise your new repayment. If you have a fixed rate loan, your rate and repayments will not change during the period of the fixed rate agreement.
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| Do RateOne home loans have redraw? |
Yes. If you’re ahead on your scheduled repayments, you can redraw the extra funds if eligible. Redraw is available with all RateOne variable rate home loans. For fixed rate home loans, redraw is only available at the end of the fixed rate period (i.e. when the rate becomes variable). The minimum redraw amount is $50 if via internet and telephone banking.
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| What’s the difference between a line of credit and a standard home loan? |
A line of credit is similar to an overdraft facility in that you have access to a pre-approved credit limit (e.g. $150,000), which you can access at anytime through a transaction account. You can use as much or as little as you like and only pay interest on what you’ve used. There is no regular repayment schedule and no principal repayments are required unless the credit limit is reached or cancelled.
With a standard home loan, interest is charged on the principal (the amount you still have owing) and a regular repayment schedule is required.
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| What’s the difference between a ‘principal and interest loan’ and an ‘interest only’ loan? |
A principal and interest loan means that when you make your home loan repayments, the repayment is paying off the interest charged for that week/fortnight/month and part of the principal (the amount that you borrowed).
With an interest only loan, the repayment only pays off the interest charges. The principal is then paid off in full at the end of the loan period or gradually paid off when you switch the loan to ‘principal and interest’.
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| What’s the difference between a fixed and variable rate home loan? |
A fixed rate loan means that the interest rate, which applies to your loan, will stay the same for the fixed rate period. For example, if you take out a 3 year fixed rate home loan, the interest rate will be the same for all 3 years, which means you know exactly what your repayments will be.
A variable rate loan means that the interest rate could change throughout the life of the loan. For example, if the Reserve Bank of Australia increases or decreases official interest rates, these changes will typically affect the variable interest rate that applies to the loan
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| What is Mortgage Insurance? |
Mortgage Insurnace is charged to the borrower over 80% LVR. It is their to protect the lender incase the borrower defaults on their loan. Over 80% the cleint will pay for the premium on Full Document loans, and between 60 - 80% on Low Doc loans.
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