The Rock Building Society Essentials Home Loan has a very low variable rate of interest if you’re borrowing less than 90 per cent of your property’s value, and a moderately high rate if you’re borrowing more as an owner-occupier and a high rate as an investor.
The small deposit requirement makes this an attractive offering, however lenders mortgage insurance will be an added cost if your deposit is made to be less than 20 per cent on top of the costs from the higher interest rate.
Six loan splits can be made on this loan, meaning you can take advantage of both a fixed and variable rate of interest.
Repayments can be made weekly, fortnightly or monthly as principal and interest or as interest-only repayments, which can be made for an allowed period if approved by The Rock Building Society.
You can make unlimited additional repayments towards repaying your loan early, while also being able to use the free online redraw facility to access these funds if you need to.
An offset facility is available if you want to use your savings to reduce the amount of interest owed on your loan, though be sure to check if this is 100 per cent offset and if you will have to pay fees for maintaining this account.
The Essentials Home Loan is also available for construction with the added benefit of progressive drawdown, where interest is only charged on the funds you use since you can draw funds as you need them.
The Rock Building Society Essentials Home Loan could be good for first homebuyers looking to make a small deposit, though the higher interest rate on top of the upfront cost might outweigh this benefit.
Therefore, because of the lower interest rate and lack of extra costs through lenders mortgage insurance, this loan might better suit borrowers with more money saved up for a deposit.
The Rock Building Society Essentials Home Loan offers some competitive variable interest rates and features to suit different borrowing needs – such as progressive drawdown for those building a home, an interest-only option that is appealing to investors and a small deposit requirement that could be suitable for first home buyers.
This loan is worth considering should you meet the minimum borrowing amount and eligibility criteria and should the included features and conditions meet your criteria for a home loan.
The Rock Building Society Essentials Home Loan is offered as a home or investment loan at different borrowing amounts which can be looked into by following the corresponding links.