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Portability:

Loan portability is where the loan facility allows for the existing security property to be replaced by another security property without having to refinance or payout the loan. What do people do when they sell their existing property and buy another property? Well, many of them pay off their existing loan and then get another loan. This may not be the most cost effective way of doing things, as there may be all sorts of charges to be paid when moving from one loan to another. For example, discharge costs associated with paying out the old loan, establishment costs, and other costs associated with establishing a new loan. Portability helps save on costs if a borrower is intending to not remain in the existing property for a long time.

Progress Draw:

Progressive draw allows you to pay the builder for the construction/renovation as the building work reaches each stage of completion. This allows for the borrower to make no repayments or only pay interest on the amount currently drawn, rather than the full amount

Repayment Holiday

A repayment holiday enables you to take a break from your loan repayments by putting your loan repayments on hold for three months. This allows you to free up funds to use as you wish - to take a holiday or purchase a large item.

At the end of the repayment holiday, the repayment amount is increased to ensure that you repay the loan in full within the agreed term. You can also elect to repay the repayment holiday in a lump sum at the end of the

Reduced Repayment:

Reduced repayments are where your repayments are decreased during periods of large expenses such as extended holidays or renovations. One method of doing so is by using the equity in your existing house and putting it into a repayment account. While this account cannot be accessed during the repayment period, it reduces the amount paid by the borrower. Thus you pay less while still paying the full repayment amount.

Parental Leave:

The parental leave option provides those expecting a birth with welcome relief by temporarily reducing their home loan repayments. Parental leave can assist in the management of your finances allowing you to enjoy this happy time in your life. This allows customers on maternity/paternity leave who are eligible to temporarily reduce their home loan repayment amount, and is usually available for up til 6 months.

Smart Pay:

Lets you deposit all of your income into your loan account. You can then arrange automatic transfers to pay your bills and access regular cash deposits. Every day that you have extra money in your loan saves you interest.

Offset Accounts:

A mortgage offset account is a savings account linked to the loan account. Here the balance in the savings account is offset against that owing on the mortgage. Any ‘notional’ interest on savings is earned at the same rate as the linked loan. Over time, savings in your offset account can help to reduce the loan principal, allowing you to pay off your loan sooner or build up equity. There are two different types of offset accounts – a 100 per cent offset and a partial offset account.

Redraw Facility:

Redraw is where the lender allows additional repayments into your loan account which the borrower can then access when necessary. It has two key advantages:
• it encourages borrowers to make extra repayments, thereby saving on interest costs
• it provide flexible access to funds when they are most needed