The P&N Bank Smooth Loan is a simple home loan which offers a moderate variable interest rate and some features, such as additional repayments to help you pay off your loan faster.
Additionally, the redraw facility gives you the ability to redraw any of these extra repayments you make towards this loan should you decide you need this money back.
However, there is no 100 per cent offset account to help you reduce the interest payable on your loan but this can be expected from a basic home loan option.
Borrowers with more than 20 per cent deposit will have access to a lower rate however the variable rates offered are still on the high side. You can make a smaller deposit, but be sure to keep in mind that borrowing amounts that are greater than 80 per cent of a property’s value come with added lenders mortgage insurance payments and it’s likely you’ll be paying a slightly higher rate.
This loan is not available as an investment loan and keep in mind that you do have to be a member of P&N Bank or become a member in order to take out the Smooth Loan.
This could be a good loan option for first home buyers since it only requires a small deposit.
If you’re looking for a basic home loan that doesn’t have all the frills offered by fully-feature loans, the Smooth Loan could be an option for you.
Be cautious though of the moderately high variable interest rate and upfront cost as this may end up being more expensive in the end than other more competitively prices loans on the market.
It’s always a good idea to make a checklist of exactly what you need and are looking for in a home loan and to compare your options, or to seek financial advice from a specialist.
Find out more information about the P&N Bank Smooth Loan options at different borrowing amounts.
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