Australian Military Bank Variable Offset Loan

Features

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.

Who is the Australian Military Bank Variable Offset Loan good for?

The Australian Military Bank Variable Offset Loan will be good for any borrowers hoping for a variable rate loan with offset and redraw facilities. It may particularly suit first time buyers due to the large number of payment options and the small deposit required.

Review - What RateCity says

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.

Australian Military Bank Variable Offset Loan Options

The Australian Military Bank Variable Offset Loan provides loans at a range of sizes, with a very small minimum deposit.

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More details

Variable Rates from

4.33%

Advertised rate

4.37%

Comparison rate
Pros
  • 100 per cent offset account.
  • Additional repayments allowed.
  • Low minimum deposit required.
Cons
  • Relatively high upfront fees.
  • Discharge fee charged.
  • Must be a member of Australian Military Bank.
Eligibility

Must meet minimum deposit requirement.

Must be a member of Australian Military Bank.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
Fees
  • Estimated upfront fees: $750.00
  • Discharge fees: $300
  • Ongoing fees: $0

A relatively large upfront fee will be payable at establishment of the Australian Military Bank Variable Offset Loan but borrowers will pay no ongoing fees. A discharge fee will be payable on termination of the loan.

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

The Australian Military Bank was founded in 1959 with the aim of providing banking services to the Australian Defence Force. It continues to provide these services, offering a broad range of financial products. While the bank has some branches, customers can reach the bank using the general enquiries hotline six days a week.

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