Reward Me Home Loan (Interest Only) ($750k+, LVR < 60%)
Cashback
$2500 cashback when you refinance. Minimum loan size $300k, LVR up to 80%- Last updated on 02 Jun 2020
Discount Variable Home Loan
Make the move to UBank's award winning home loan
2.59%
Variable
2.59%
Owner Occupier Discounted Variable Rate
3.47%
Variable
3.51%
$1,118
based on $300,000 loan amount for 25 years
Pros
- 100% full offset account
- Extra repayments + redraw services
- Free redraw facility
- Repayments may decrease if RBA cuts rates
Cons
- Discharge fee at end of loan
- Repayments may increase if RBA raises rates
Maximum LVR 60% | Interest rate structure Variable |
Borrowing range $750k - $100m | Total Repayments $260,280 |
Principal & interest | Interest only |
Loan term range 1 - 30 years | Offset account 100% offset account |
Extra repayments Unlimited extra repayments | Redraw facility Redraw fee: $0 |
Allows split interest | Suitable For Owner Occupiers |
Applicable States ACT, NSW, NT, QLD, SA, TAS, VIC, WA | |
Estimated upfront fees $450 | Application fee $300 |
Settlement fee $150 | Valuation fee $0 |
Legal fee $0 | Ongoing fee $10 |
Discharge fee $350 | Property Type |
SMSF Trustee | Minimum SMSF Amount |
- Cashback $2500 cashback when you refinance. Minimum loan size $300k, LVR up to 80%For all new refinance applications received between 18 May 2020 and 28 August 2020, and have their loan settled by 30 October 2020.Minimum loan amount $300,000 and up to 80% loan-to-value ratio. You will need to open a Reward Me Home Loan Companion account alongside your loan, where the $2,500 cashback payment will be credited within 60 days of settlement.
Compare and review home loans with similar features
Virgin Money is a financial services company that was founded in 2003 by the Virgin Group and Macquarie Bank. The company was bought by the Bank of Queensland in 2013.
Virgin Money has a head office in Sydney and offers a range of financial products and services, including credit cards, superannuation, home loans, insurance and savings account.
Virgin Money Home Loan Calculator
Interested in an Virgin Money home loan? RateCity has a suite of calculators that can show you what your repayments would be and how Virgin Money compares to its competitors. Simply plug in your borrowing amount below.
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FAQs
Each lender has its own policies, but as a general rule you will have to pay lender’s mortgage insurance (LMI) if your loan-to-value ratio (LVR) exceeds 80 per cent. This applies whether you’re taking out a new home loan or you’re refinancing.
If you’re looking to buy a property, you can use this LMI calculator to work out how much you’re likely to be charged in LMI.
A deposit of 20 per cent or more is ideal as it’s typically the amount a lender sees as ‘safe’. Being a safe borrower is a good position to be in as you’ll have a range of lenders to pick from, with some likely to offer up a lower interest rate as a reward. Additionally, a deposit of over 20 per cent usually eliminates the need for lender’s mortgage insurance (LMI) which can add thousands to the cost of buying your home.
While you can get a loan with as little as 5 per cent deposit, it’s definitely not the most advisable way to enter the home loan market. Banks view people with low deposits as ‘high risk’ and often charge higher interest rates as a precaution. The smaller your deposit, the more you’ll also have to pay in LMI as it works on a sliding scale dependent on your deposit size.
Lender’s Mortgage Insurance (LMI) is an insurance policy, which protects your bank if you default on the loan (i.e. stop paying your loan). While the bank takes out the policy, you pay the premium. Generally you can ‘capitalise’ the premium – meaning that instead of paying it upfront in one hit, you roll it into the total amount you owe, and it becomes part of your regular mortgage repayments.
This additional cost is typically required when you have less than 20 per cent savings, or a loan with an LVR of 80 per cent or higher, and it can run into thousands of dollars. The policy is not transferrable, so if you sell and buy a new house with less than 20 per cent equity, then you’ll be required to foot the bill again, even if you borrow with the same lender.
Some lenders, such as the Commonwealth Bank, charge customers with a small deposit a Low Deposit Premium or LDP instead of LMI. The cost of the premium is included in your loan so you pay it off over time.
Lenders mortgage insurance (LMI) can be avoided by having a substantial deposit saved up before you apply for a loan, usually around 20 per cent or more (or a LVR of 80 per cent or less). This amount needs to be considered genuine savings by your lender so it has to have been in your account for three months rather than a lump sum that has just been deposited.
Some lenders may even require a six months saving history so the best way to ensure you don’t end up paying LMI is to plan ahead for your home loan and save regularly.
Tip: You can use RateCity mortgage repayment calculator to calculate your LMI based on your borrowing profile