BankVic Offset Variable Loan

Features

The BankVic Offset Variable Loan gives you the chance to offset the interest charged on your home loan with the balance of a linked transaction account by only charging interest on the difference between your transaction account and your home loan balance.

The downside of this loan is that while you can offset your interest, the variable rates offered by this loan are higher than average.

Pros of this loan include the flexible repayment schedule, which gives you the choice of making weekly, fortnightly or monthly repayments, and the ability to make additional repayments for free.

There’s also a redraw facility available so you can take out funds from any additional repayments you may make.

Pre-approval is offered on this loan and if you move homes during your loan term then you can take the loan with you.

You must be borrowing a minimum of $20,000 in order to be eligible for the Offset Variable Loan, however you can borrow up to 95 per cent of a property’s value, which means you’re only required to put down a five per cent deposit on your property.

But, if you’re borrowing more than 80 per cent of the value of your property you will have to pay lenders mortgage insurance. This is an added cost on top of your home loan, but if you know you will have greater funds further down the line, it could be a good way to be able to purchase a property by only having to make a small deposit.

Who is the BankVic Offset Variable Loan good for?

The BankVic Offset Variable Loan is suitable for borrowers who know they can be savvy with the funds they deposit in their 100 per cent offset account, since the advantage offsetting your interest can only be obtained through maintaining your offset account balance.

Review - What RateCity says

This BankVic offering could suit someone looking to maximise the use of an offset account, however the high interest rate is a deterrent.

That said, this loan does offer a number of beneficial features so if you are already a BankVic member and like the service they provide then it could be worth prioritise each of these features as a part of your home loan checklist to see if it stacks up.

BankVic Offset Variable Loan Options

The Offset Variable Loan is offered as a home or investment property loan. Find out more information about each option by clicking the links below.

1 - 2 of 2
Product
Advertised rate
Comparison rate*
Monthly repayment
Go To Site
Compare

More details

Compare

More details

Variable Rates from

4.29%

Advertised rate

4.26%

Comparison rate
Pros
  • 100 per cent offset account.
  • Early repayments and redraws.
  • Small deposit required.
Cons
  • High variable interest rates.
  • Moderate upfront cost.
  • Discharge fee.
Eligibility

Must be a member of BankVic.

Must have a BankVic Investor or Ezepac account.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $590.00
  • Discharge fees: $195
  • Ongoing fees: $0

The BankVic Offset Variable Loan has no ongoing fees, however, this does not include any fees that you might incur through the transaction account you use as your offset account.

There are also fairly high upfront fees attached to this loan and a discharge fee at the end of the loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About BankVic

Designed for police, emergency, health and public service members, BankVic focuses on offering tailored financial products and services to its members within the Victorian community. There is limited branch access with just four BankVic sites, but members have a country-wide ATM network and access to phone and internet banking.

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