RateCity.com.au
Advertisement

P&N Bank Fixed Rate Loan

Features

The Fixed Rate Loan from P&N Bank gives you the option to leave a five per cent deposit to lock down your property. This is a great way for unexperienced buyers or buyers on a budget to lock down a home. If you can or want to, this loan allows you to leave more than a 20 per cent deposit which will make your interest rate lower and help you pay off your loan sooner.

If security is what you’re after, the Fixed Rate Loan from P&N Bank gives you the option to have your fixed rate for a period of two to five years, after which the rate switches to the current variable rate. This loan also has a principal and interest or interest only repayment option (available for up to five years), making it good for first homebuyers and investors alike.

You can choose to make you repayments via a direct deduction from your pay or through direct debit set up through your bank. This automatic payment structure gives you one less thing to think about, and makes it easier to budget for the rest of your finances.

The Fixed Rate Loan from P&N Bank comes with a split loan feature, giving you flexibility and security simultaneously. There is no offset or redraw facility with this loan, so make sure that if you make any additional repayments that you won’t need the cash later on down the track.

Who is the P&N Bank Fixed Rate Loan good for?

The P&N Bank Fixed Rate Loan is suitable for a whole range of buyers. The interest only choice in conjunction with the option to leave more than a 20 per cent deposit if you so wish is great for investors. They have five years of interest only for their property to appreciate in value and as their deposit would generally be larger, they would pay less interest. The split loan feature is attractive for refinancers and owner occupiers as it gives flexibility along with security, and the option to leave a minimal five per cent deposit makes it a good way for first homebuyers to break in to the market.

Review - What RateCity says

The Fixed Rate Loan from P&N Bank has many features that could make it suitable for a range of buyers. This includes an interest only repayment period, that could be suitable for investors, and a split loan feature, that could work well for borrowers who are new to the market.

The five per cent deposit option could be an attractive selling point for a first home buyer with a small deposit, but be warned, you will pay a higher interest rate and lenders mortgage insurance.

The big disadvantages with this loan are that the lender is completely localised within WA. If you live outside the state but are interested in the loan, it may be difficult to get in face-to-face contact with a consultant.

P&N Bank Fixed Rate Loan Options

The Fixed Rate Loan from P&N Bank allows you to fix your loan for a period of two to five years.

Product
Advertised rate
Comparison rate*
Monthly repayment
Go To Site
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details
Details

Fixed Rates from

3.89%

Advertised rate

4.97%

Comparison rate
Pros
  • Split loan feature.
  • Interest only payment option available.
  • Five per cent deposit accepted.
Cons
  • Limited branch access.
  • No redraw facility.
  • Ongoing fees.
Eligibility

Must have at least five per cent deposit.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $395
  • Discharge fees: $395
  • Ongoing fees: $8 monthly

The Fixed Rate Loan from P&N Bank charges upfront, monthly ongoing, and discharge fees. The fees are not as high as other loans, however, as there are recurring fees each month, this is something to consider before making a decision.

There is also a fee charged for paying out the loan early. For borrowers who want to make extra repayments throughout the loan, this should be kept in mind.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About P&N Bank

P&N Bank is based in Western Australia and only has branches in this part of the country. Their branches are open for five days a week, eight hours a day. They also have a call centre and online enquiry forms for you to use. P&N Bank also offers a mobile lender service, where a lender comes to you.

Compare your product with the big 4 banks, or add more products to compare