The Gateway Bank Variable Rate Loan has a minimum and maximum loan amount and owner-occupiers can borrow up to 95 per cent of the value of the property, while investors and those refinancing can borrow up to 90 per cent. However, lenders mortgage insurance may be required for any loan over 80 per cent of the property value.
Repayments can be made weekly, fortnightly and monthly as principal and interest, or as interest-only for up to five years. Note that interest only repayments can only be made monthly.
Additional payments are permitted and customers can use an online redraw facility to access these extra payments, with a minimum redraw amount of $500.
There is also a 100 per cent offset account to allow borrowers to use their savings to reduce the amount of interest paid on the mortgage. The loan gives customers a VISA debit card to access this account and waives the monthly service fee.
The loan can be split with a Gateway Bank fixed rate loan option and can be transferred to another property with the portability option.
The Gateway Bank Variable Rate Loan is good for homebuyers who want the flexibility and options of a variable interest rate and different repayment options.
Investors may be attracted by the ability to make interest-only repayments for up to five years.
The ability to make additional repayments, redraw on these payments and use an offset account to minimise the interest owed on the loan are all attractive options for those looking to pay off their mortgage quickly or at a changing pace.
However, while the loan has no ongoing fees, it does have a high variable comparison rate, which makes it more suitable for those planning on using the offset account and additional repayment options to reduce their loan. Otherwise, customers may find lower rates elsewhere without the added features.
Investors can only borrow up to 90 per cent of the property value and interest-only payments are only allowed for five years, which doesn’t give investors as much freedom as other loans might.
The Gateway Bank Variable Rate Loan is a standard variable loan offered to both owner-occupiers and investors.
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