The Mortgage House Special Fixed Loan offers borrowers access to a low fixed rate if they are able to provide a deposit of 30 per cent or more. Borrowers must also be borrowing no more than $500,000 dollars.
If you do qualify under these conditions, you will have access to a highly competitive fixed rate with additional repayments allowed without penalty at any time. You will also be able to redraw on the equity built into your loan for future needs.
An interest only variation of the loan is available if borrowers wish to take advantage of this feature. The loan can also be split between a fixed and variable rate.
This loan is portable meaning it can be taken from property to property without having the cost of re-establishing a new loan.
The Mortgage House Special Fixed Loan is good for refinancing owner-occupier borrowers who want to use the equity built up in their loan to score a competitive fixed rate. As the loan requires a 30 per cent deposit, most first-home buyers would perhaps struggle to secure this loan for their first property.
Borrowers who want the ability to make extra repayments without penalty during the life of the mortgage will appreciate the features offered by this loan.
The Mortgage House Special Fixed Loan is a low rate fixed loan for owner-occupier borrowers but it does come with high fees that push up the loan’s comparison rate. Borrowers will have to pay a sizeable upfront fee to secure the loan and while there are no ongoing fees there is a discharge fee payable at the end of the loan. It is therefore advisable for refinancers in particular to calculate if the savings they gain from the low rate will be worth the switching costs.
Overall the features on offer, including the unlimited additional repayments and the redraw facility, are beneficial for borrowers who are looking to pay down their mortgage as quickly as possible at a low rate. For those who are used to using an offset account, however, the lack of this feature may be a considered a negative when looking at this loan.
For owner-occupier borrowers considering this loan, options can be found in the table below: