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Fixed term options
Unlike in the US, there are no lenders in Australia that offer 20 or 30 year fixed rates for standard residential home loans. Police Bank Goldrate Home Loan offers fixed loan terms between 1 - 5 years.
Selling the property or refinance during the fixed rate term can trigger hefty fees for breaking a fixed rate contract, and fixed rate loans tend to have restrictions on making extra repayments. Before you lock your rate in, you need to be sure that a fixed rate home loan is suitable for your situation.
LVR options
LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.
An LVR of 95% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
Repayment options
Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.
Interest only repayment option is not available with Police Bank Goldrate Home Loan for refinance.
Paying pricinpal and interest
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Q&As
Does Police Bank Goldrate Home Loan comes with an offset account?
Yes, Goldrate Home Loan comes with a 100% offset account.
A 100% offset account is an account linked to your home loan where you can park your savings and spare cash to reduce the interest you pay. Then, when interest is calculated on your home loan, the balance in your offset account is deducted from the loan amount owing, and interest is only charged on what remains.
What are the costs to apply for Police Bank Goldrate Home Loan?
There is upfront costs of $1042.64 to apply for Goldrate Home Loan, with no ongoing account keeping fees.
- Application fee: $600
- Settlement fee: $68.64
- Document fee: $374
Are there costs when I exit or refinance to another lender?
Police Bank charge a discharge fee of $294, which covers the cost for removing the mortgage that has been registered on the title of your property.
Police Bank may also charge you a fixed-rate break cost if you refinance out of Goldrate Home Loan or sell your house before the fixed term ends. It can cost thousands of dollars, and the advantages of breaking the fixed loan won't always outweigh the disadvantages.
IMPORTANT: Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Police Bank or a mortgage broker just to be sure. This information should be used as a guide only.