The Australian Military Bank Variable Offset Loan will allow borrowers to provide a deposit as small as just five per cent of the full value of the home. They will then be able to take advantage of the minimal barrier to entry with a 30-year loan term, and a number of features designed to help them reduce their principal and interest quicker than standard payments would allow.
The Australian Military Bank Variable Offset Loan is named for the 100 per cent offset account that borrowers will have access to. Borrowers can put their savings directly into this account to offset and reduce the amount of interest owing.
Borrowers will also be able to make extra repayments at any time to reduce the principal on their loan, and as a result reduce the loan’s full term. This feature is combined with the freedom and security provided by the ability to redraw these funds at any time in case they should be need elsewhere. Borrowers should note that this redraw facility is subject to a $500 minimum transaction.
Finally, while this is a variable rate loan, the Australian Military Bank gives borrowers the option of combining it with one of their fixed rate home loans in order to create a split loan option that the borrower is happy with.
Borrowers will also be able to choose how frequently their repayments are due: weekly, fortnightly, or monthly.
The Australian Military Bank’s Variable Offset Loan provides a great deal of flexibility in a straightforward and simple package. It allows for borrowers to provide a very low minimum deposit, but also gives them the tools to compensate for the slow start during the term of their loan. It achieves this by providing flexible payment and interest rate options, and through its additional repayments and offset account.
The Australian Military Bank Variable Offset Loan provides loans at a range of sizes, with a very small minimum deposit.