The IMB Discount Split Loan offers customers the option of putting a portion of their loan on a variable rate and setting the remainder on a fixed rate to give people the best of both worlds – that is, the flexibility a variable loan brings along with the peace of mind fixed rates can provide.
The interest rate on the fixed portion will depend on the length of the fixed term, your borrowing amount and your deposit size, with the most benefit for customers with larger deposits.
The variable portion of your loan does attract a discount in the first 12 months however be aware that after this time the interest rate will revert to IMB’s standard variable rate which is high.
The Discount Split Loan from IMB has a flexible repayment schedule in which you can make repayments weekly, fortnightly or monthly. This gives you an extra element of control over your finances so you can prioritise your payments to a schedule that suits you.
You can make additional repayments on both the variable and fixed portions of your loan however there is a limit on the fixed side of the loan, with no more than up to an extra year’s worth of repayments.
The Discount Split Loan also has a redraw facility so you can dip back in to any additional payments you’ve made towards your loan, and there’s no minimum so you are free to take out what you need when you need it. There may be restrictions on making redraws for extra repayments made during your fixed term which can vary between loan contracts.
You only have to put down a five per cent deposit to secure your property for this loan, which gives you a way to lock down your home. Though, if you make any deposit amount under 20 per cent then you must pay lender’s mortgage insurance on your loan and you will be subject to a higher interest rate, which are costs you should factor in to determine the overall cost of this loan as it relates to you.
The Discount Split Loan from IMB can be a suitable option for first homebuyers since you can make a small deposit on your property and take advantage of a low variable interest rate within the first year. There are also flexible repayment options and if you have the funds you have the ability to repay this loan early.
First home buyers may be attracted to the IMB Discount Split Loan as it provides them with a way to sample both the fixed and variable landscapes. The low introductory rate on the variable portion of the loan may also attract bargain hunters but be aware that this rate reverts to a high variable rate of interest and you’ll need to be able to afford these repayments after 12 months.
Another disadvantage of this loan is the relatively high upfront cost of the loan which could detract refinancers looking for a better deal.
However, if you’re looking for a split home loan option specifically with IMB and know you will have the funds to repay this loan following the introductory period, it would be worth weighing this loan against your particular needs to determine if this is the one for you.
Click the link below for more information on the Discount Split Loan from IMB.