The minimum deposit for the Yellow Brick Road Empower Package Loan is five per cent of the property’s value including lenders mortgage insurance. The loan term is 30 years unless a shorter term is negotiated at settlement.
With the Yellow Brick Road Empower Package Loan, customers can choose from a fixed or variable interest rate to package with their 100 per cent offset account. Repayments for this loan can be made on an interest only or principal and interest basis depending on the borrower’s requirements.
Borrowers who select a variable rate loan will be able to make unlimited extra repayments over the life of the loan. These extra repayments can be accessed using a redraw facility if they are needed by the borrower in future.
The Yellow Brick Road Empower Package Loan is most suitable for customers who want a low rate loan with the added benefit of a 100 per cent offset account attached.
The 100 per cent offset account may be a great way to help reduce the overall amount of interest payed on the loan in a way that requires little effort on behalf of the borrower.
Borrowers who want to lock in a fixed rate for up to five years, while still having access to an offset account, will find this loan meets these requirements as well.
The Yellow Brick Road Empower Package Loan offers the interest saving benefit of a 100 per cent offset account coupled with a competitive interest rate for both variable and fixed loans. Combined, these two factors would save a borrower a large amount of interest over a 30-year term compared with other loans.
It is important to keep in mind that these benefits come along with a moderate annual fee that should be factored in to calculations when considering the loan. It would also be good to keep in mind, for those who want to make extra repayments, that unlimited extra repayments are only uncapped for variable rate borrowers.
There are variations of the Yellow Brick Road Empower Package that can be tailored to the needs of a variety of borrowers on the market.