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Aussie Optimizer Line of Credit Loan

Features

The Aussie Optimizer Line of Credit Loan is a variable interest rate loan with loads of flexibility. A line of credit functions in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need, with interest paid on the outstanding balance.

The Aussie facility offers good flexibility, including the option to pay interest only for up to 15 years of your loan term, which may appeal to investors particularly. The lowest rates are, however, offered to owner-occupiers with a 20 per cent deposit or more within the higher borrowing amount range. Slightly higher rates apply if you borrow less than that. The maximum amount you can borrow is 90 per cent of the property’s value, although lenders mortgage insurance is required on loans over 80 per cent.

The minimum loan amount on this line of credit is relatively high, which may put off first home buyers and refinancers. But still, compared to a personal loan, interest rates are much lower. Repayment arrangements are flexible – you may pay fortnightly or monthly and repay extra at any time on the loan without penalty. You can make your repayments via direct debit from your linked transaction account, or via salary credit.

Directly crediting your salary into your line of credit loan is a great way to save on interest costs and can knock years off your home loan – provided you are disciplined about keeping your deposits in your account as well as make unlimited extra repayments. You can access extra repayments at no extra charge through a redraw facility, at the minimum withdrawal amount via Aussie’s website once access is set up.

While there is no offset account available with this loan, you don’t really need it as a line of credit operates like a transaction account and you can get your income paid directly into this account. You can split a home loan between different loan types at no additional cost and up to 10 home loan splits are available. Another bonus is that the loan is portable.

Who is the Aussie Optimizer Line of Credit Loan good for?

Aussie’s Optimizer Line of Credit Loan is good for disciplined money managers looking for a flexible loan than can be tailored to their financial needs. With the low upfront fee and low annual charges, this loan may suit owner-occupiers, including first home buyers, investors or refinancers. But you need to be careful not to allow interest costs to accumulate. Much like a credit card, you should repay some principal. While you don’t have to for many years, interest costs could be higher than on those on a traditional principal and interest loan, so you need to be careful with lines of credit.

Review - What RateCity says

The Aussie Optimizer Line of Credit Loan is a very flexible offering, with a competitive interest rate. The low annual fee makes it an inexpensive loan to maintain. The main bonus is that it provides customers with access to extra cash quickly. Applying for personal loan or credit card can be arduous, whereas this line of credit means you can access money when you need it – up to your borrowing limit. You can use the funds for any number of purposes, including home renovations or a holiday, or even as a deposit to buy another property. With some careful forward planning, this is a loan that can work for you. But lines of credit work best when you are disciplined with your money and repay your debt when you can to keep interest costs down. 

Aussie Optimizer Line of Credit Loan Options

The range of Aussie Optimizer Line of Credit Loan options is broad, so click on the links below to find the one best suited to your financial situation, and your wealth creation goals.

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Fixed Rates from

3.88%

Advertised rate

3.81%

Comparison rate

Variable Rates from

3.69%

Advertised rate

3.70%

Comparison rate
Pros
  • Very low fixed and variable interest rates available.
  • No upfront fees.
  • Early repayments and redraws allowed.
Cons
  • Higher rates for smaller deposit sizes.
  • Discharge and annual ongoing fees.
  • No 100 per cent offset facility.
Eligibility

Must meet minimum borrowing amount.

Must meet serviceability criteria.

Must be able to provide proof of income.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $0 - $363
  • Discharge fees: $400
  • Ongoing fees: $0 - $198 annually

A big bonus is that there are no upfront fees to pay in establishing your loan.  Nor are there any transaction fees on the accounts or fees for splitting your loan. The Aussie Optimizer Line of Credit Loan, however, has an annual ongoing fee.  Fees may apply for varying your loan after settlement and for loan portability to a new property. The discharge fee is also quite high. As mentioned earlier, redraws are free if you make them online or via phone banking. All up, it’s a low fee loan with competitive interest rates.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Aussie

Aussie was originally a mortgage broker. Now the organisation offers its own home loans as well as a range of other financial products, with retail stores throughout Australia and a team of mortgage brokers who can come to you. But Aussie is not a bank and doesn’t have the same branch network or services as the big banks. You can, however, access your loan via internet banking and any ATM displaying the cash card symbol without incurring extra fees.

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