If you’ve got an existing home loan with another lender and are looking to refinance to a low rate variable loan or to upgrade your first home, the Economy Home Loan offers a very low variable interest rate as long as you meet the deposit requirement of 20 per cent.
One of the main features of this loan is the 100 per cent offset account where your balance in this savings account is offset to your home loan balance, with interest only charged on the difference between these balances.
If you maintain and continue contributing to your offset account, you can help to significantly reduce how much interest you have to pay over the life of your loan. Interest-only repayments can also be paid towards this loan for a set period.
Another way you can help reduce the total cost of your loan by taking months and even years off your loan term is through making additional repayments towards your loan balance with no limit to how many you can make.
A redraw facility is also available if you find yourself needing to withdrawal these funds, which provides peace of mind from the security of knowing you can access your extra repayments.
The Economy Home Loan is not available to investors.
The Economy Home Loan was designed with refinancers in mind and is not available to investors. If you already have a loan with another lender and are looking for a low rate variable loan with access to a 100 percent offset account, then this could be a loan option worth considering.
You must be a member of MOVE Bank.
Homeowners looking to refinance to a loan with a better rate may find the Economy Home Loan to be a great option. While a 100 per cent offset account and the ability to make interest-only repayments, early repayments and redraws are excellent features, this loan doesn’t offer much else in terms of features.
This isn’t necessarily a con if you’re looking for a simple home loan with just the right amount of repayment flexibility offered by these features. However, be sure that they are enough for you to weigh up against the fees associated with the Economy Home Loan.
Read more below about the Economy Home Loan from MOVE Bank.