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Pros and cons

  • Large variety of home loan products to suit all borrowers
  • Flexible loan options
  • Ability to earn Qantas Points on some loans
  • Some loans have high fees
  • Limited physical branch network

Owner occupied products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Basic Home Loan (Min Deposit 40%)
2.14% p.a.
2.14% p.a. Comparison rate
2.59% p.a.
2.59% p.a. Comparison rate
Basic Home Loan (Min Deposit 30%)
2.19% p.a.
2.19% p.a. Comparison rate
2.59% p.a.
2.59% p.a. Comparison rate
1 Year Basic Home Loan (Min Deposit 30%)
2.24% p.a.
2.19% p.a. Comparison rate
3.09% p.a.
2.63% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 40%)
2.19% p.a.
2.19% p.a. Comparison rate
2.64% p.a.
2.64% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 30%)
2.24% p.a.
2.24% p.a. Comparison rate
2.64% p.a.
2.64% p.a. Comparison rate
1 Year Basic Flyer Home Loan (Min Deposit 30%)
2.29% p.a.
2.24% p.a. Comparison rate
3.14% p.a.
2.68% p.a. Comparison rate
2 Year Basic Home Loan (Min Deposit 30%)
2.74% p.a.
2.28% p.a. Comparison rate
3.39% p.a.
2.73% p.a. Comparison rate
2 Year Basic Flyer Home Loan (Min Deposit 30%)
2.79% p.a.
2.33% p.a. Comparison rate
3.44% p.a.
2.78% p.a. Comparison rate
3 Year Basic Home Loan (Min Deposit 30%)
3.09% p.a.
2.41% p.a. Comparison rate
3.49% p.a.
2.81% p.a. Comparison rate
Offset Home Loan packaged
3.01% p.a.
3.28% p.a. Comparison rate
2.89% p.a.
3.16% p.a. Comparison rate
3 Year Basic Flyer Home Loan (Min Deposit 30%)
3.14% p.a.
2.46% p.a. Comparison rate
3.54% p.a.
2.86% p.a. Comparison rate
Basic Home Loan (Min Deposit 20%)
2.24% p.a.
2.24% p.a. Comparison rate
2.89% p.a.
2.89% p.a. Comparison rate
Offset Flyer Home Loan packaged
2.74% p.a.
3.01% p.a. Comparison rate
2.94% p.a.
3.21% p.a. Comparison rate
1 Year Offset Home Loan packaged
2.74% p.a.
3.25% p.a. Comparison rate
3.39% p.a.
3.2% p.a. Comparison rate
1 Year Basic Home Loan (Min Deposit 20%)
2.24% p.a.
2.24% p.a. Comparison rate
3.39% p.a.
2.93% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 20%)
2.29% p.a.
2.29% p.a. Comparison rate
2.94% p.a.
2.94% p.a. Comparison rate
4 Year Basic Home Loan (Min Deposit 30%)
3.29% p.a.
2.54% p.a. Comparison rate
3.69% p.a.
2.94% p.a. Comparison rate
1 Year Offset Flyer Home Loan packaged
2.29% p.a.
2.57% p.a. Comparison rate
3.44% p.a.
3.25% p.a. Comparison rate
1 Year Basic Flyer Home Loan (Min Deposit 20%)
2.29% p.a.
2.29% p.a. Comparison rate
3.44% p.a.
2.98% p.a. Comparison rate
2 Year Offset Home Loan packaged
2.74% p.a.
2.6% p.a. Comparison rate
3.69% p.a.
3.29% p.a. Comparison rate
4 Year Basic Flyer Home Loan (Min Deposit 30%)
3.34% p.a.
2.59% p.a. Comparison rate
3.74% p.a.
3% p.a. Comparison rate
2 Year Basic Home Loan (Min Deposit 20%)
2.74% p.a.
2.32% p.a. Comparison rate
3.69% p.a.
3.03% p.a. Comparison rate
2 Year Offset Flyer Home Loan packaged
2.79% p.a.
2.65% p.a. Comparison rate
3.44% p.a.
3.05% p.a. Comparison rate
3 Year Offset Home Loan packaged
3.14% p.a.
2.74% p.a. Comparison rate
3.49% p.a.
3.08% p.a. Comparison rate
2 Year Basic Flyer Home Loan (Min Deposit 20%)
2.79% p.a.
2.37% p.a. Comparison rate
3.74% p.a.
3.08% p.a. Comparison rate
5 Year Basic Home Loan (Min Deposit 30%)
3.49% p.a.
2.69% p.a. Comparison rate
3.89% p.a.
3.1% p.a. Comparison rate
3 Year Basic Home Loan (Min Deposit 20%)
3.14% p.a.
2.46% p.a. Comparison rate
3.79% p.a.
3.12% p.a. Comparison rate
3 Year Offset Flyer Home Loan packaged
3.19% p.a.
2.78% p.a. Comparison rate
3.54% p.a.
3.13% p.a. Comparison rate
5 Year Basic Flyer Home Loan (Min Deposit 30%)
3.54% p.a.
2.74% p.a. Comparison rate
3.94% p.a.
3.15% p.a. Comparison rate
3 Year Basic Flyer Home Loan (Min Deposit 20%)
3.19% p.a.
2.51% p.a. Comparison rate
3.84% p.a.
3.17% p.a. Comparison rate
4 Year Offset Home Loan packaged
3.34% p.a.
2.86% p.a. Comparison rate
3.69% p.a.
3.21% p.a. Comparison rate
4 Year Basic Home Loan (Min Deposit 20%)
3.34% p.a.
2.59% p.a. Comparison rate
3.99% p.a.
3.25% p.a. Comparison rate
4 Year Offset Flyer Home Loan packaged
3.39% p.a.
2.91% p.a. Comparison rate
3.74% p.a.
3.26% p.a. Comparison rate
4 Year Basic Flyer Home Loan (Min Deposit 20%)
3.39% p.a.
2.64% p.a. Comparison rate
n/a
Basic Home Loan (Min Deposit 10%)
2.69% p.a.
2.69% p.a. Comparison rate
n/a
Basic Flyer Home Loan (Min Deposit 10%)
2.74% p.a.
2.74% p.a. Comparison rate
n/a
5 Year Basic Home Loan (Min Deposit 20%)
3.54% p.a.
2.74% p.a. Comparison rate
n/a
5 Year Basic Flyer Home Loan (Min Deposit 20%)
3.59% p.a.
2.8% p.a. Comparison rate
n/a
5 Year Offset Home Loan packaged
3.54% p.a.
3.01% p.a. Comparison rate
n/a
1 Year Basic Home Loan (Min Deposit 5%)
2.74% p.a.
2.99% p.a. Comparison rate
n/a
Basic Home Loan (Min Deposit 5%)
3.01% p.a.
3.01% p.a. Comparison rate
n/a
5 Year Offset Flyer Home Loan packaged
3.59% p.a.
3.06% p.a. Comparison rate
n/a
1 Year Basic Flyer Home Loan (Min Deposit 5%)
2.79% p.a.
3.04% p.a. Comparison rate
n/a
2 Year Basic Home Loan (Min Deposit 5%)
3.24% p.a.
3.05% p.a. Comparison rate
n/a
Basic Flyer Home Loan (Min Deposit 5%)
3.06% p.a.
3.06% p.a. Comparison rate
n/a
2 Year Basic Flyer Home Loan (Min Deposit 5%)
3.29% p.a.
3.1% p.a. Comparison rate
n/a
3 Year Basic Home Loan (Min Deposit 5%)
3.91% p.a.
3.24% p.a. Comparison rate
n/a
3 Year Basic Flyer Home Loan (Min Deposit 5%)
3.96% p.a.
3.29% p.a. Comparison rate
n/a

Investment purpose products interest rates

TMD

Loan typePrincipal & Interest rateInterest Only
Basic Home Loan (Min Deposit 40%)
2.29% p.a.
2.29% p.a. Comparison rate
2.59% p.a.
2.59% p.a. Comparison rate
Basic Home Loan (Min Deposit 30%)
2.39% p.a.
2.39% p.a. Comparison rate
2.59% p.a.
2.59% p.a. Comparison rate
1 Year Basic Home Loan (Min Deposit 30%)
2.54% p.a.
2.4% p.a. Comparison rate
2.74% p.a.
2.6% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 30%)
2.44% p.a.
2.44% p.a. Comparison rate
2.64% p.a.
2.64% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 40%)
2.34% p.a.
2.34% p.a. Comparison rate
2.64% p.a.
2.64% p.a. Comparison rate
1 Year Basic Flyer Home Loan (Min Deposit 30%)
2.59% p.a.
2.45% p.a. Comparison rate
2.79% p.a.
2.65% p.a. Comparison rate
2 Year Basic Home Loan (Min Deposit 30%)
3.04% p.a.
2.5% p.a. Comparison rate
3.24% p.a.
2.7% p.a. Comparison rate
2 Year Basic Flyer Home Loan (Min Deposit 30%)
3.09% p.a.
2.55% p.a. Comparison rate
3.29% p.a.
2.75% p.a. Comparison rate
3 Year Basic Home Loan (Min Deposit 30%)
3.29% p.a.
2.61% p.a. Comparison rate
3.49% p.a.
2.81% p.a. Comparison rate
Offset Home Loan packaged
2.49% p.a.
2.76% p.a. Comparison rate
2.89% p.a.
3.16% p.a. Comparison rate
3 Year Basic Flyer Home Loan (Min Deposit 30%)
3.34% p.a.
2.66% p.a. Comparison rate
3.54% p.a.
2.86% p.a. Comparison rate
1 Year Offset Home Loan packaged
2.64% p.a.
2.78% p.a. Comparison rate
2.94% p.a.
3.16% p.a. Comparison rate
Basic Home Loan (Min Deposit 20%)
2.49% p.a.
2.49% p.a. Comparison rate
2.89% p.a.
2.89% p.a. Comparison rate
1 Year Basic Home Loan (Min Deposit 20%)
2.64% p.a.
2.5% p.a. Comparison rate
2.94% p.a.
2.89% p.a. Comparison rate
Offset Flyer Home Loan packaged
2.54% p.a.
2.81% p.a. Comparison rate
2.94% p.a.
3.21% p.a. Comparison rate
1 Year Offset Flyer Home Loan packaged
2.69% p.a.
2.83% p.a. Comparison rate
2.99% p.a.
3.21% p.a. Comparison rate
Basic Flyer Home Loan (Min Deposit 20%)
2.54% p.a.
2.54% p.a. Comparison rate
2.94% p.a.
2.94% p.a. Comparison rate
1 Year Basic Flyer Home Loan (Min Deposit 20%)
2.69% p.a.
2.55% p.a. Comparison rate
2.99% p.a.
2.94% p.a. Comparison rate
4 Year Basic Home Loan (Min Deposit 30%)
3.49% p.a.
2.74% p.a. Comparison rate
3.69% p.a.
2.94% p.a. Comparison rate
2 Year Offset Home Loan packaged
3.14% p.a.
2.87% p.a. Comparison rate
3.44% p.a.
3.25% p.a. Comparison rate
2 Year Basic Home Loan (Min Deposit 20%)
3.14% p.a.
2.6% p.a. Comparison rate
3.44% p.a.
2.98% p.a. Comparison rate
4 Year Basic Flyer Home Loan (Min Deposit 30%)
3.54% p.a.
2.79% p.a. Comparison rate
3.74% p.a.
3% p.a. Comparison rate
2 Year Offset Flyer Home Loan packaged
3.19% p.a.
2.92% p.a. Comparison rate
3.29% p.a.
3.02% p.a. Comparison rate
2 Year Basic Flyer Home Loan (Min Deposit 20%)
3.19% p.a.
2.65% p.a. Comparison rate
3.49% p.a.
3.03% p.a. Comparison rate
3 Year Offset Home Loan packaged
3.39% p.a.
2.98% p.a. Comparison rate
3.49% p.a.
3.08% p.a. Comparison rate
5 Year Basic Home Loan (Min Deposit 30%)
3.69% p.a.
2.9% p.a. Comparison rate
3.89% p.a.
3.1% p.a. Comparison rate
3 Year Basic Home Loan (Min Deposit 20%)
3.39% p.a.
2.71% p.a. Comparison rate
3.79% p.a.
3.12% p.a. Comparison rate
3 Year Offset Flyer Home Loan packaged
3.44% p.a.
3.03% p.a. Comparison rate
3.54% p.a.
3.13% p.a. Comparison rate
5 Year Basic Flyer Home Loan (Min Deposit 30%)
3.74% p.a.
2.95% p.a. Comparison rate
3.94% p.a.
3.15% p.a. Comparison rate
3 Year Basic Flyer Home Loan (Min Deposit 20%)
3.44% p.a.
2.76% p.a. Comparison rate
3.84% p.a.
3.17% p.a. Comparison rate
4 Year Offset Home Loan packaged
3.59% p.a.
3.11% p.a. Comparison rate
3.69% p.a.
3.21% p.a. Comparison rate
4 Year Basic Home Loan (Min Deposit 20%)
3.59% p.a.
2.84% p.a. Comparison rate
3.99% p.a.
3.25% p.a. Comparison rate
4 Year Offset Flyer Home Loan packaged
3.64% p.a.
3.16% p.a. Comparison rate
3.74% p.a.
3.26% p.a. Comparison rate
4 Year Basic Flyer Home Loan (Min Deposit 20%)
3.64% p.a.
2.89% p.a. Comparison rate
n/a
5 Year Basic Home Loan (Min Deposit 20%)
3.79% p.a.
3% p.a. Comparison rate
n/a
5 Year Basic Flyer Home Loan (Min Deposit 20%)
3.84% p.a.
3.05% p.a. Comparison rate
n/a
5 Year Offset Home Loan packaged
3.79% p.a.
3.26% p.a. Comparison rate
n/a
5 Year Offset Flyer Home Loan packaged
3.74% p.a.
3.21% p.a. Comparison rate
n/a
Basic Home Loan (Min Deposit 10%)
3.25% p.a.
3.25% p.a. Comparison rate
n/a
1 Year Basic Home Loan (Min Deposit 10%)
3.29% p.a.
3.25% p.a. Comparison rate
n/a

Home loan repayment calculator

Thinking about taking out a home loan with Macquarie Bank? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how Macquarie Bank home loans compare with other options.

I am an

With a repayment type

Borrow amount

$

Deposit amount %

Loan term

Your estimated mortgage repayments

at interest rate 2.14%

Total interest payable

$0

Total loan repayments

$0

Macquarie Bank customer service

Customers can contact Macquarie Bank by phone, or submit an online enquiry to have a Macquarie Bank home loan specialist make contact.

✓     Customer service centre (phone)

✓     Mobile app

✓     Online banking

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✓     Mobile banking staff

How to apply for a Macquarie Bank home loan

Borrowers wanting to apply for a Macquarie Bank home loan can complete an online enquiry form or call a loan specialist directly. 

Before applying for a Macquarie Bank home loan, it’s important to think about how much you can afford to borrow and comfortably repay, as well as what other costs you need to include.

When you apply for a Macquarie Bank home loan, you’ll need to provide:

  • Proof of employment and income e.g. recent payslips
  • Proof of identity e.g. driver’s license or passport
  • Details of any assets, debts or liabilities, including car loans and personal loans

About Macquarie Bank home loans

Macquarie Bank offers home loans that could suit a wide range of customers, including:

  • Owner-occupier home loans
  • Investor home loans
  • Refinancing home loans
  • Construction loans

Additionally, Macquarie Bank home loans are available with a variety of interest rate and repayment options, including:

  • Principal and interest
  • Interest-only
  • Variable interest
  • Fixed interest
  • Split interest

Some Macquarie Bank mortgages include an offset account, which can let you use your savings to help reduce your interest charges.

Macquarie Bank home loans come with a maximum loan term of 30 years. Extra repayments are allowed on selected home loans, as are redraw facilities.

Macquarie Bank home loan rates

Macquarie Bank home loan interest rates tend to be moderately low to moderately high, depending on the amount being borrowed and the Loan to Value Ratio or LVR.

Typically, owner occupiers with smaller loans who can make a deposit of 20 per cent or more can secure some of the lowest interest rates.

At the other end of the spectrum, investors borrowing a significant amount with a low deposit are often charged some of the highest interest rates.

Borrowers can choose between a variable-rate home loan with Macquarie Bank, which may rise or fall over time, or a fixed-rate home loan, with an interest rate that will stay the same for up to 5 years, for simpler budgeting.

Macquarie Bank’s upfront fees for home loans tend to be very low, while ongoing fees range from very low to high depending on the home loan. Discharge fees may also apply at the end of the loan term.

Macquarie Bank home loans review

Macquarie Bank offers a reasonably wide range of home loans for different borrowers, such as owner-occupiers, investors and those looking to refinance their homes. It’s worth noting, however, that it does not offer low doc home loans.

While it may not necessarily offer the cheapest home loans on the market, Macquarie Bank nonetheless caters to a range of borrowers, and offers flexibility with home loan options such as offset accounts and redraw facilities on some home loans. Macquarie Bank's interest rates and fees are different for these different types of home loans.

Learn more about home loans

How do you compare home loans?

To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.

Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.

Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.

How to apply for a pre-approval home loan from Bendigo Bank?

Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork. 

Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home. 

With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances. 

To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.

How can I apply for a first home buyers loan with Commonwealth Bank?

Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.

You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.

You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.

CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property.  The link to download this app is available on the same webpage.

If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.

What is a home loan?

A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.

Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.

The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.

Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.

How do I apply for a home improvement loan?

When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying. 

Besides taking out a home improvement loan, you could also:

  1. Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement.  Speak with your lender or a mortgage broker about accessing your equity.
  2. Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
  3. Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
  4. Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.  

Do you compare mortgages using the comparison or advertised rate?

A lot of Australians compare home loans using the advertised interest rate, which indicates how much interest you’ll be charged on your mortgage repayments. The lower your rate, the cheaper your home loan should be.

However, interest charges aren’t the only cost associated with home loans. Most mortgage lenders also charge fees on their home loans. A mortgage with a low interest rate and high fees can sometimes cost more than a mortgage with a high interest rate and low fees.

A home loan’s comparison rate combines the cost of interest with the cost of standard fees and charges into a single percentage rate. Mortgage lenders are required to display a comparison rate alongside their advertised rate to better indicate the home loan’s overall cost.

Keep in mind that to ensure consistency, all comparison rates are calculated assuming a $150,000 principal and interest mortgage with a 25 year term. As your home loan may be different, the comparison rate may not accurately reflect exactly how much your home loan may cost. Also, the comparison rate doesn’t include every home loan fee and charge, so it’s still important to compare home loans and read the fine print before you apply.

Does the Home Loan Rate Promise apply to discounted interest rate offers, such as honeymoon rates?

No. Temporary discounts to home loan interest rates will expire after a limited time, so they aren’t valid for comparing home loans as part of the Home Loan Rate Promise.

However, if your home loan has been discounted from the lender’s standard rate on a permanent basis, you can check if we can find an even lower rate that could apply to you.

How do you find cheap home loans?

With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.

Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.

One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.

Who offers 40 year mortgages?

Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

Can first home buyers apply for an ING home loan?

First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan. 

First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates. 

First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.

Why does Westpac charge an early termination fee for home loans?

The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee. 

The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.

Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.

Cash or mortgage – which is more suitable to buy an investment property?

Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.

A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.

When does Commonwealth Bank charge an early exit fee?

When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.

The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:

  • If you switch your loan from fixed interest to variable rate
  • When you apply for a top-up home loan
  • If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
  • When you prepay the entire outstanding loan balance before the end of the fixed interest duration.

The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay. 

How do I apply for Westpac’s first home buyer loan?

If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan. 

You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments

When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for. 

What are the different types of home loan interest rates?

A home loan interest rate is used to calculate how much you’ll pay the lender, usually annually, above the amount you borrow. It’s what the lenders charge you for them lending you money and will impact the total amount you’ll pay over the life of your home loan. 

Having understood what are home loan rates in general, here are the two types you usually have with a home loan:

Fixed rates

These interest rates remain constant for a specific period and are a good option if you’re a first-time buyer or if you’re looking for a fixed monthly repayment. One possible downside of a fixed rate is that it may be higher than a variable rate. Also, you don’t benefit from any lowering of interest rates in the market. On the flip side, if rates go up, your rate won’t change, possibly saving you money.

Variable rates

With variable interest rates, the lender can change them at any time. This change can be based on economic conditions or other reasons. Changes in interest rates could be beneficial if your monthly repayment decreases but can be a problem if it increases. Variable interest rates offer several other benefits often not available with fixed rate home loans like redraw and offset facilities and free extra repayments.