Mortgage House’s Vantage Home Loan comes with a Toggle offset home loan facility. This rather unique loan facility gives you the certainty of a fixed rate loan with the flexibility of a variable rate loan product.
The toggle facility allows you to split your loan between fixed and variable interest rates, and attach an offset account to both components. You can then move (or ‘toggle’) your money between the two offset accounts, optimising any savings on interest rates. Not only can you save thousands of dollars but you may also be able to pay your loan off faster.
Mortgage House’s variable Vantage Offset Home Loan allows you to make additional repayments without penalty. You also have access to free redraw. This allows you to better manage your cash flow.
You can attach your toggle offset facility to a construction loan, and it can also be taken out as part of a Lo-Doc loan. There is an Interest Only option too. You can also port this facility loan from one property to another, although you should be aware that there are fees attached to this. There are no early payout penalties.
The Vantage Offset Loan Package includes a credit card at the same low interest rate as your home loan.
Mortgage House’s Vantage Home Loan applies to the fixed rate loan as well – and the offset account attached to the fixed portion of your loan allows unlimited repayments without penalty, as well as free redraws. There is no rate-lock option though so your fixed rate will be determined by the timing of your loan settlement.
However as with any fixed rate loan break fees do apply. There are no early payout penalties and the credit card facility is available with the fixed rate loan as well.
Mortgage House’s Vantage Offset Home Loan is a good choice for smart money managers. Allowing you to toggle your spare cash between your offset accounts can help maximise your savings and maintain maximum financial flexibility as well. It can also knock years off your loan.
However, the upfront fees for this loan are comparatively high, so ensure you calculate your loan costs accordingly.
The toggle facility is attractive and can save you money – but flexibility comes at a price. The interest rates on the loans in this package are also higher than most other lenders. As always, make sure you calculate your costs with care.
Mortgage House’s Vantage Offset Home Loan with its hybrid toggle offset loan facility has great flexibility. With two offset accounts you can take full advantage of interest rate movements by moving excess repayments to the relevant component of your loan, so as to derive maximum benefit.
While Mortgage House is a loan specialist, not a bank, you can still do your banking with them. You can have offset accounts through which you can transact and the toggle offset loan comes with a visa card as well.
Both the interest rate and the upfront costs of the toggle offset facility are high so be aware of this. There are more competitive loan options out there but they may not offer you the same level of flexibility. As always, do your sums with care. You may find toggling your money around saves you more than enough to compensate for the additional interest. It comes down to your numbers in the end.
Read more below about the Mortgage House Vantage Offset Loan.