Equity Access
New Smart Home Loan
special
Get one of the lowest variable interest rates on the market and pay no application or ongoing fees
2.78%
Variable
2.80%
Smart Home Loan
5.12%
Variable
5.27%
$1,067
Pros
- Parents can sign as guarantor
- Repayments may decrease if RBA cuts rates
Cons
- No extra repayments
- No redraw and no offset
- Discharge fee at end of loan
- Repayments may increase if RBA raises rates
Maximum LVR 90% | Interest rate structure Variable |
Borrowing range $20k - $100m | Total Repayments $384,120 |
Principal & interest | Interest only |
Loan term range 1 - 30 years | Offset account No |
Extra repayments Not Allowed | Redraw facility |
Allows split interest | Suitable For Investors, Line of Credit |
Applicable States ACT, NSW, NT, QLD, SA, TAS, VIC, WA | |
Estimated upfront fees $395 | Application fee $395 |
Settlement fee $0 | Valuation fee $0 |
Legal fee $0 | Ongoing fee $10 |
Discharge fee $395 | Property Type |
SMSF Trustee | Minimum SMSF Amount |
Aggregator |
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P&N Bank was formed as the Polices and Nurses Credit Society in Western Australia in 1990 and is now the state’s largest bank.
The bank is member-owned and headquartered in Perth, with branches throughout Western Australia. It provides a number of financial products, such as personal and home loans, savings accounts, term deposits, credit cards and insurance. The bank also offers financial planning and international money transfer services.
P&N Bank has won numerous awards, including Bank of the Year in the Roy Morgan Customer Satisfaction Awards in 2014.
P&N Bank Home Loan Calculator
Interested in an P&N Bank home loan? RateCity has a suite of calculators that can show you what your repayments would be and how P&N Bank compares to its competitors. Simply plug in your borrowing amount below.
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FAQs
A redraw facility attached to your loan allows you to borrow back any additional repayments that you have already paid on your loan. This can be a beneficial feature because, by paying down the principal with additional repayments, you will be charged less interest. However you will still be able to access the extra money when needed.
We use your current mortgage details to calculate the potential savings if you were to change lenders, and also to help us point you to loans that may meet your needs.
For example – if you live in the house you own, we’ll make sure we show you the owner-occupier rates, which are typically cheaper than investor rates. Or if you have less than 20% equity in your property, then we won’t show you the deals that require a greater amount of equity.
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.
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.
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.
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.
The difference between an offset and redraw account is that an offset account is intended to work as a transaction account that can be accessed whenever you need. A redraw facility on the other hand is more like an “emergency fund” of money that you can draw on if needed but isn’t used for everyday expenses.
Yes, ANZ, Commonwealth Bank, NAB and Westpac all offer guarantor home loans. These mortgages are also offered by many other banks, credit unions and building societies.
Equity refers to the difference between what your property is worth and how much you owe on it. Essentially, it is the amount you have repaid on your home loan to date, although if your property has gone up in value it can sometimes be a lot more.
You can use the equity in your home loan to finance renovations on your existing property or as a deposit on an investment property. It can also be accessed for other investment opportunities or smaller purchases, such as a car or holiday, using a redraw facility.
Once you are over 65 you can even use the equity in your home loan as a source of income by taking out a reverse mortgage. This will let you access the equity in your loan in the form of regular payments which will be paid back to the bank following your death by selling your property. But like all financial products, it’s best to seek professional advice before you sign on the dotted line.