Freedom Package Home Loan Plus (Principal and Interest) (LVR 90%-95%)
- No upfront fees
- 100% full offset account
- Suitable for low deposits
- Parents can sign as guarantor
- Annual fee charged
- Discharge fee at end of loan
- Repayments may increase if RBA raises rates
Interest rate structure
$100k - $100m
Principal & interest
Loan term range
1 - 30 years
100% offset account
Unlimited extra repayments
Redraw fee: $20
Allows split interest
ACT, NSW, NT, QLD, SA, TAS, VIC, WA
Estimated upfront fees
Minimum SMSF Amount
Compare and review home loans with similar features
Auswide Bank (formerly Wide Bay Australia) was created in 1966 as Queensland-based building society, later becoming a bank. It was started with the aim of challenging the big four banks by providing low-deposit home loans.
In recent years Auswide Bank has gone on to offer an extensive range of personal finance and banking products to help everyday Australians achieve their goals and build their wealth.
As the name would suggest, Auswide Bank is widely accessible with branches and ATMs across the country. Before its relaunch, Auswide Bank was named by the People’s Choice Awards as “Best Building Society” in 2014.
Auswide home loan calculator
Interested in an Auswide home loan? RateCity has a suite of calculators that can show you what your repayments would be and how Auswide compares to its competitors. Simply plug in your borrowing amount below.
It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.
The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.
But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.
A loan-to-value ratio (otherwise known as a Loan to Valuation Ratio or LVR), is a calculation lenders make to work out the value of your loan versus the value of your property, expressed as a percentage. Lenders use this calculation to help assess your suitability for a home loan, and whether you need to pay lender’s mortgage insurance (LMI). As a general rule, most banks will require you to pay LMI if your loan-to-value ratio is 80 per cent or more. LVR is worked out by dividing the loan amount by the value of the property. If you are looking for a quick ball-park estimate of LVR, the size of your deposit is a good indicator as it is directly proportionate to your LVR. For instance, a loan with an LVR of 80 per cent requires a deposit of 20 per cent, while a 90 per cent LVR requires 10 per cent down payment.
LOAN AMOUNT / PROPERTY VALUE = LVR%
While this all sounds simple enough, it is worth doing a more accurate calculation of LVR before you commit to buying a place as there are some traps to be aware of. Firstly, the ‘loan amount’ is the price you paid for the property plus additional costs such as stamp duty and legal fees, minus your deposit amount. Secondly, the ‘property value’ is determined by your lender’s valuation of the property, not the price you paid for it, and sometimes these can differ so where possible, try and get your bank to evaluate the property before you put in an offer.