Interest Rates
The amount charged as a percentage on the loan for lending the money to you.
Interest Only (IO)
Means only the interest each Month is payable, but of course you can opt to pay more. Which creates re-draw. Interest Only is usually for a period of up to 10 years, then you opt to renew it as Interest only or pay Principle & Interest to pay the loan off over the remaining term.
Principle & Interest (P&I)
Means that you are paying an amount each month to reduce the loan over the given term of the Loan. Payments are made up of both Interest and Principle. (principle is what you owe or borrowed) So with time each months worth of principle reduces the original Loan amount.
Line of Credit (LOC)
Means that you only have to make payments to keep the Loan below it's Limit.
Redraw
Means drawing on the extra funds you have paid to the loan over and above what you would normally have paid off the loan at that point in time. All Re-draws can only go to the Bank Account we are currently collecting Loan Repayments from.
Bank Account
This is the account we direct Debit your Loan Payments from, on a minimum of a monthly basis. Yes, you can pay the loan in advance weekly, fortnightly on any business day of your choice, and Yes you can change it and Yes you can nominate more than one Bank Account.
Monthly Fees
This is the great part, we charge no monthly fees. Nil zip zero...On our Standard variable Fully Optioned Home Loan!
Increasing
If you need to borrow further funds, which will alway be cheaper than re-financing, re-financing means you will have to pay the loan setup costs again, including Mortgage Lenders Insurance, Government fees, with the new lender. Always ask us if you can do an increase or borrow for another purpose. With our rates, why borrow elsewhere and pay more in interest and monthly fees. Remember we or a lender can only lend on the current value of your property and will always be subject affordability (prudent lending guidelines) and will incur some extra costs.
Customer Service
Our team of support personnel are there to assist you with transactions you are having problems with or can't do yourself, via the Phone Net or Loan Service Net. Phone 0408 595 555 or (07) 3801 4144
PhoneNet
Using the telephone to access your Loan accounts, for related information and processing extra payments and redraws. Phone 1300-650-931
Loan Service Net
A highly secure Internet based, therefore a visual version of the PhoneNet as above. click this link To The LoanNet
Customer Number
Usually Mailed to you within two to three weeks of your loan settling. It is Needed to access either the Phone Net or the Loan Service Net.
Access Code
Issued to you separately to access the Phone Net or Loan Service Net, this is a temporary code, that you must use within 14 Days, before being cancelled. Once used you must select your own code for your security.
Advantage of Re-Draw
When you save money in your bank account, you get only a low rate of interest that is taxable as income, when you make payments to your home loan, you have access to these funds, but you are saving whatever your rate of Interest is. Say your loan rate is 7.50% THEN EVERY DAY YOU HAVE $1,000 extra in your loan then you save 7.50% on that $1,000 and every other dollar.
