|
Crown will find YOU the Home Loan that will save you the most amount of TIME and MONEY in 4 Very Simple Steps...
...and You will Receive Our eBook:
"How To Get Out Of Debt In Half The Time & Pay LESS per Month!" FREE!
|
No Frills With Bank of Queensland's Economy Loan
Bank of Queensland
| 
| 
| 
| 
| 
| 
| 
| 
| 
| 
If you're looking for a variable rate home loan with just the basics, maybe you're wondering whether a "no frills loan" might be for you.
A basic home loan, such as the Economy Home Loan offered by the Bank of Queensland, is attractive because of its lower standard variable rate. Be aware that what a bank deems as a "lower" rate is generally only measured against the rates offered through their other home loan product, and the same rate may not be considered low when compared with non-bank lenders.
The advantage of a relatively low rate of interest is that you have more of a chance to repay your home loan sooner as if rates fall, your minimum repayments will be less. Conversely, if the interest rate rises, the amount your repay will also increase, so be sure to account for some fluctuations in the interest rate when budgeting for your home loan.
Of course, you should consider more than just the interest rate when exploring your home loan options. Fees and charges can add to the cost of your home loan, so do your homework first. The Bank of Queensland's Economy Loan requires an application fee of $595 and an ongoing $10 per month account fee.
The Economy Loan is suitable for owner-occupiers, who can borrow up to 95% of the property value, or investors who can borrow up to 90% of the property value.As is the case with most home loans, lenders mortgage insurance if required the borrowed amount is more than 80% of the value of the property. Why? Basically, the more you borrow, the more of a risk you are to the bank, so lenders mortgage insurance covers the bank if you miss a payment.
No frills loans tend to attract restrictions and fewer features than other types of loan but fortunately, the Economy Loan allows you to make unlimited additional repayments at any time, which means you have the ability to pay off your loan sooner.
The issue of making redraws is less straightforward. You are allowed to make redraws with the Economy Loan, with a minimum amount of $100, but access to the redraw facility is subject to the bank's approval and may involve fees and charges.
When considering a no frills loan, always think ahead of the features that you may not necessarily need in the immediate future, but would be useful to your financial situation a couple of years in the future.
Bookmark/Search this post with:
| | | | | | | | | | 