First Option Bank Standard Home and Investment Loan

Features

The First Option Bank Standard Loan offers customers the ability to make additional repayments with no penalty, as well as redraw on these payments with a minimum redraw of $200. The loan also comes with a 100 per cent mortgage offset account to allow customers to use their savings to reduce interest repayments.

Customers can borrow up to 95 per cent of the property value, however lenders mortgage insurance is required for loans over 80 per cent. Fixed rate loans are available for up to three years and a rate lock option is also offered. Interest-only repayments are also offered for investment loans up to five years. 24-hour phone and internet banking services are available and the loan can be repaid through salary deduction.

Customers will need to become a First Option member to take out a loan but can apply for a loan before joining.

Who is the First Option Bank Standard Home and Investment Loan good for?

The First Option Bank Standard Home and Investment loan is good for customers who want a high degree of flexibility in repaying their loan. The inclusion of an offset account and unrestricted additional repayments make the loan attractive to those looking to get ahead on their mortgage and minimise the overall interest paid.

Review - What RateCity says

The First Option Credit Union Standard Home and Investment Loan may be a high interest rate loan, but offers a number of significant features that make it attractive for homebuyers and investors requiring for a lot of freedom in how and when they repay their mortgage.

The ability to make additional repayments and use an offset account to reduce the interest paid are valuable for those looking to pay off their loan in a cheaper or timlier manner. The redraw facility also gives you the ability to access any additional repayments you have made. The high rate and upfront fees may make this loan viable only for those fully intending to take advantage of the flexible repayment options it provides.

First Option Bank Standard Home and Investment Loan Options

The First Option Bank Standard Home and Investment loan is a variable loan with fixed rate options up to three years.

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Fixed Rates from

4.85%

Advertised rate

4.52%

Comparison rate

Variable Rates from

4.49%

Advertised rate

4.49%

Comparison rate
Pros
  • Offset account.
  • Additional repayments allowed.
  • Redraw facility.
Cons
  • Includes some upfront fees.
  • High interest rate.
  • Limited branch access.
Eligibility

Must be over 18 years of age.

Must be a citizen or permanent resident of Australia or New Zealand.

Must meet First Option’s serviceability criteria.

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

The First Option Bank Standard Home and Investment loan has no ongoing fees but comes with high upfront fees. The loan also includes a moderate discharge fee, as well as small redraw fees and a rate lock fee. Additional repayments on fixed rate loans may also incur a fee.

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

First Option Bank is a member-owned bank primarily catering for those in or with an affinity to the gaming, leisure, hospitality, telecommunications and energy industries. It has four Victoria branches and one in NSW and can be contacted online, via email or by phone.

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