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Yellow Brick Road Empower Loan

Features

The Yellow Brick Road Empower Loan is offered for owner-occupiers and investors, which are purchasing or refinancing at variable rates that are very low for owner-occupiers and moderate to moderately high for investors.

The fixed rates offered range from moderate to moderately high depending on your fixed term on a principal and interest repayment schedule, and from moderate to very high on an interest-only repayment schedule.

Customers of this loan can fix their rate for free at any time throughout the loan term.

Unlimited extra repayments can be made by variable rate customers without penalty and fixed rate customers can make additional repayments up to a certain percentage per year without being charged a fee.

However, fixed rate customers can make early interest-only repayments, although only variable rate customers have access to the redraw facility.

This loan does not offer a 100 per cent offset account, however you can package this loan with the Empower Package, which provides a 100 per cent off set account, but you must pay an annual fee for this package option.

You can borrow up to 95 per cent of your property’s value with this loan, but borrowing over 80 per cent of a property’s value may be subject to lenders mortgage insurance.

However, the Empower Loan also offers a family guarantee so the equity in the home of a family member can serve as security over your loan, which may waive the need to pay lenders mortgage insurance.

There is a minimum loan amount that customers must borrow in order to qualify for the Empower Loan.

Who is the Yellow Brick Road Empower Loan good for?

The Empower Loan is available for the purchasing, refinancing or construction of a home or investment property.

Since family equity guarantee is offered with the Empower Loan, it is suitable for first home buyers. This home loan is also good for people who want a variable rate, or a fixed rate with principal and interest repayments since these options offer very low to moderate interest rates.

Review - What RateCity says

The Empower Loan may be a great option if you’re eligible, as it has very low to moderate interest rates. This means variable-rate customers and fixed-rate customers making principal and interest payments may benefit from this home loan.

However, there is a high establishment fee for construction loans, a moderate upfront fee for all other loans and a moderately-high discharge fee. It’s best to see if these fees and higher rates apply to you to determine if this home loan is the most suitable option.

Yellow Brick Road Empower Loan Options

There are a range of options offered by Yellow Brick Road for the Empower Loan. Find out more information about each by clicking the corresponding links below.

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Fixed Rates from

3.88%

Advertised rate

3.80%

Comparison rate

Variable Rates from

3.69%

Advertised rate

3.69%

Comparison rate
Pros
  • Moderately to very low variable rates available.
  • Redraw facility available.
  • Family equity option.
Cons
  • Must package and pay annual fee for 100 per cent offset account option.
  • Minimum borrowing amount.
  • Moderately high discharge fee.
Eligibility

Minimum borrowing amount.

Must be able to provide proof of income.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $330
  • Discharge fees: $400
  • Ongoing fees: $0 - $0 annually

This loan has a high upfront fee charged for construction loans, a moderate upfront cost for all other purposes and a moderately-high discharge fee. While this loan features $0 in ongoing fees, there is an annual fee charged for packaging this loan with the Empower Package. Redrawing any extra repayments manually is subject to a fee, however using the redraw facility through electronic banking is free.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Yellow Brick Road

Yellow Brick Road is an Australian wealth management company with managers who are small business owners.

In addition to telephone and internet banking, customers also have access to Yellow Brick Road customer service at branches across the country.

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