MyState Bank

Cash on Hand Line of Credit Investment Loan

Real Time Rating™

0.79

/ 5
Advertised Rate

4.92%

Variable

Comparison Rate*

5.14%

Maximum LVR
Less than 80%
Real Time Rating™

0.79

/ 5
Monthly Repayment

$2,030

based on $350,000 loan amount for 25 years

Calculate repayment for MyState Bank product

Advertised Rate

4.92%

Variable

Comparison Rate*

5.14%

Maximum LVR
Less than 80%
Real Time Rating™

0.79

/ 5

I'd like to borrow

$

Loan term

years

Your estimated repayment

$2,030

based on $350,000 loan amount for 25 years

Pros and Cons

Pros and Cons

    • No extra repayments
    • No redraw and no offset
    • Ongoing fee
    • Discharge fee at end of loan

    MyState Bank Features and Fees

    MyState Bank Features and Fees

    Details

    Maximum LVR

    Less than 80%

    Total Repayments

    Next LVR

    Interest rate type

    Variable

    Borrowing range

    Suitable for

    Investors, Line of Credit

    Loan term range

    1 - 30 years

    Principal & interest

    Interest only

    Applicable states

    ACT, NSW, NT, QLD, SA, TAS, VIC, WA

    Make repayments

    Fortnightly, Monthly, Weekly

    Features

    Extra repayments

    Not Allowed

    Redraw facility

    Split interest facility

    Loan portable

    Repayment holiday available

    Allow guarantors

    Available for first home buyers

    Fees

    Total estimated upfront fees

    $950

    Application fee

    $600

    Valuation fee

    $0

    Settlement fee

    $350

    Other upfront fee

    $0

    Ongoing fee

    $150 annually

    Discharge fee

    $250

    Application method

    Online

    Phone

    In branch

    Specials
    • Cashback Refinance your home or investment property and get $2000 as cashback*
      *Borrowers must reside in Tasmania. One cashback per loan application. Available on loans >$250k, LVR ≤ 80% and settled within 90 days of offer letter.

    Pros and Cons

      • No extra repayments
      • No redraw and no offset
      • Ongoing fee
      • Discharge fee at end of loan

      MyState Bank Features and Fees

      Details

      Maximum LVR

      Less than 80%

      Total Repayments

      Next LVR

      Interest rate type

      Variable

      Borrowing range

      Suitable for

      Investors, Line of Credit

      Loan term range

      1 - 30 years

      Principal & interest

      Interest only

      Applicable states

      ACT, NSW, NT, QLD, SA, TAS, VIC, WA

      Make repayments

      Fortnightly, Monthly, Weekly

      Features

      Extra repayments

      Not Allowed

      Redraw facility

      Split interest facility

      Loan portable

      Repayment holiday available

      Allow guarantors

      Available for first home buyers

      Fees

      Total estimated upfront fees

      $950

      Application fee

      $600

      Valuation fee

      $0

      Settlement fee

      $350

      Other upfront fee

      $0

      Ongoing fee

      $150 annually

      Discharge fee

      $250

      Application method

      Online

      Phone

      In branch

      Specials
      • Cashback Refinance your home or investment property and get $2000 as cashback*
        *Borrowers must reside in Tasmania. One cashback per loan application. Available on loans >$250k, LVR ≤ 80% and settled within 90 days of offer letter.

      FAQs

      What is a bad credit home loan?

      A bad credit home loan is a mortgage for people with a low credit score. Lenders regard bad credit borrowers as riskier than ‘vanilla’ borrowers, so they tend to charge higher interest rates for bad credit home loans.

      If you want a bad credit home loan, you’re more likely to get approved by a small non-bank lender than by a big four bank or another mainstream lender.

      What is a line of credit?

      A line of credit, also known as a home equity loan, is a type of mortgage that allows you to borrow money using the equity in your property.

      Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.

      This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.

      What is an investment loan?

      An investment loan is a home loan that is taken out to purchase a property purely for investment purposes. This means that the purchaser will not be living in the property but will instead rent it out or simply retain it for purposes of capital growth.

      How can I get a home loan with bad credit?

      If you want to get a home loan with bad credit, you need to convince a lender that your problems are behind you and that you will, indeed, be able to repay a mortgage.

      One step you might want to take is to visit a mortgage broker who specialises in bad credit home loans (also known as ‘non-conforming home loans’ or ‘sub-prime home loans’). An experienced broker will know which lenders to approach, and how to plead your case with each of them.

      Two points to bear in mind are:

      • Many home loan lenders don’t provide bad credit mortgages
      • Each lender has its own policies, and therefore favours different things

      If you’d prefer to directly approach the lender yourself, you’re more likely to find success with smaller non-bank lenders that specialise in bad credit home loans (as opposed to bigger banks that prefer ‘vanilla’ mortgages). That’s because these smaller lenders are more likely to treat you as a unique individual rather than judge you according to a one-size-fits-all policy.

      Lenders try to minimise their risk, so if you want to get a home loan with bad credit, you need to do everything you can to convince lenders that you’re safer than your credit history might suggest. If possible, provide paperwork that shows:

      • You have a secure job
      • You have a steady income
      • You’ve been reducing your debts
      • You’ve been increasing your savings

      Are bad credit home loans dangerous?

      Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.

      Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).

      That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.

      When should I switch home loans?

      The answer to this question is dependent on your personal circumstances – there is no best time for refinancing that will apply to everyone.

      If you want a lower interest rate but are happy with the other aspects of your loan it may be worth calling your lender to see if you can negotiate a better deal. If you have some equity up your sleeve – at least 20 per cent – and have done your homework to see what other lenders are offering new customers, pick up the phone to your bank and negotiate. If they aren’t prepared to offer you lower rate or fees, then you’ve already done the research, so consider switching.

      What is a split home loan?

      A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.

      How do I refinance my home loan?

      Refinancing your home loan can involve a bit of paperwork but if you are moving on to a lower rate, it can save you thousands of dollars in the long-run. The first step is finding another loan on the market that you think will save you money over time or offer features that your current loan does not have. Once you have selected a couple of loans you are interested in, compare them with your current loan to see if you will save money in the long term on interest rates and fees. Remember to factor in any break fees and set up fees when assessing the cost of switching.

      Once you have decided on a new loan it is simply a matter of contacting your existing and future lender to get the new loan set up. Beware that some lenders will revert your loan back to a 25 or 30 year term when you refinance which may mean initial lower repayments but may cost you more in the long run.

      How does a line of credit work?

      A line of credit functions in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need it, with interest paid on the outstanding balance.

      Popular products include Commonwealth Bank Viridian Line of Credit, ANZ Equity Manager, Westpac Equity Access and NAB Flexiplus.

      Who has the best home loan?

      Determining who has the ‘best’ home loan really does depend on your own personal circumstances and requirements. It may be tempting to judge a loan merely on the interest rate but there can be added value in the extras on offer, such as offset and redraw facilities, that aren’t available with all low rate loans.

      To determine which loan is the best for you, think about whether you would prefer the consistency of a fixed loan or the flexibility and potential benefits of a variable loan. Then determine which features will be necessary throughout the life of your loan. Thirdly, consider how much you are willing to pay in fees for the loan you want. Once you find the perfect combination of these three elements you are on your way to determining the best loan for you. 

      What is a fixed home loan?

      A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.

      What is a variable home loan?

      A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.

      How can I get a home loan with no deposit?

      Following the Global Financial Crisis, no-deposit loans, as they once used to be known, have largely been removed from the market. Now, if you wish to enter the market with no deposit, you will require a property of your own to secure a loan against or the assistance of a guarantor.

      What if I can't pay off my guaranteed home loan?

      If you can’t pay off your guaranteed home loan, your lender might chase your guarantor for the money.

      A guaranteed home loan is a legally binding agreement in which the guarantor assumes overall responsibility for the mortgage. So if the borrower falls behind on their mortgage, the lender might insist that the guarantor cover the repayments. If the guarantor fails to do so, the lender might seize the guarantor’s security (which is often the family home) so it can recoup its money.

      How do guaranteed home loans work?

      A guaranteed home loan involves a guarantor (often a parent) promising to pay off a mortgage if the principal borrower (often the child) fails to do so. The guarantor will also have to provide security, which is often the family home.

      The principal borrower will usually be someone struggling to find the money to enter the property market. By partnering with a guarantor, the borrower increases their financial power and becomes less of a risk in the eyes of lenders. As a result, the borrower may:

      • Qualify for a mortgage that they would have otherwise been denied
      • Not be required to pay lender’s mortgage insurance (LMI)
      • Be charged a lower interest rate
      • Be charged less in fees

      Does Australia have no cost refinancing?

      No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

      Can I change jobs while I am applying for a home loan?

      Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

      If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

      Can I get a home loan if I am on an employment contract?

      Some lenders will allow you to apply for a mortgage if you are a contractor or freelancer. However, many lenders prefer you to be in a permanent, ongoing role, because a more stable income means you’re more likely to keep up with your repayments.

      If you’re a contractor, freelancer, or are otherwise self-employed, it may still be possible to apply for a low-doc home loan, as these mortgages require less specific proof of income.

      Will I have to pay lenders' mortgage insurance twice if I refinance?

      If your deposit was less than 20 per cent of your property’s value when you took out your original loan, you may have paid lenders’ mortgage insurance (LMI) to cover the lender against the risk that you may default on your repayments. 

      If you refinance to a new home loan, but still don’t have enough deposit and/or equity to provide 20 per cent security, you’ll need to pay for the lender’s LMI a second time. This could potentially add thousands or tens of thousands of dollars in upfront costs to your mortgage, so it’s important to consider whether the financial benefits of refinancing may be worth these costs.

      Is there a limit to how many times I can refinance?

      There is no set limit to how many times you are allowed to refinance. Some surveyed RateCity users have refinanced up to three times.

      However, if you refinance several times in short succession, it could affect your credit score. Lenders assess your credit score when you apply for new loans, so if you end up with bad credit, you may not be able to refinance if and when you really need to.

      Before refinancing multiple times, consider getting a copy of your credit report and ensure your credit history is in good shape for future refinances.