Effective Rate Home Loans
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*Repayments are based on the Standard Rate as shown in the 'white box'. The effective rate is the rate that would apply to get the same discounted 30 year interest payment after payment of a rebate for the life of the loan by your mortgage manager. A higher effective rate may apply for shorter loan terms. Fees, terms and conditions may apply TAP only. Effective Rate is Patented and has a Trademark pending. This calculator is for general information only and should not be relied upon. It is recommended that all persons considering finance should seek independent advice. © 2008 |
How does it work?
An Effective Rate Home loan is a full featured home loan that rewards you. This is how it works.
This is not a honeymoon rate OR a limited offer.
1. You make your loan repayments at the Standard Rate which is currently 5.44%pa
2. Every month you make your mortgage payments on time your mortgage manager will pay a rebate onto the outstanding balance of your mortgage. The compounding effect of that is that you will save many thousands of dollars as well as paying your home loan off up to 3.4 years sooner.
Naturally if your draw funds out of your mortgage or you shorten the term of your mortgage the Effective Rate may be slightly higher.
LOOKING FOR THE LOWEST MONTHLY REPAYMENTS?
It is important to understand that if you are looking for a home loan with the lowest possible monthly repayments then an Effective Rate Home Loan may not be for you. The one thing you can be sure of is that if you don't have an Effective Rate Home Loan you will be pay much more interest and your loan term will remain 30 years.
CALCULATOR: Compare any full featured standard variable home loan* with an Effective Rate Home loan using the calculator to the right.
Simply enter your loan amount and then the standard variable rate you'd like to compare.
Click here to submit an enquiry and start saving
* Exclude any limited offer home loan, fixed rate or honeymoon rate offers.
An Effective Rate Home loan is a full featured home loan that rewards you. This is how it works.
This is not a honeymoon rate OR a limited offer.
1. You make your loan repayments at the Standard Rate which is currently 5.44%pa
2. Every month you make your mortgage payments on time your mortgage manager will pay a rebate onto the outstanding balance of your mortgage. The compounding effect of that is that you will save many thousands of dollars as well as paying your home loan off up to 3.4 years sooner.
Naturally if your draw funds out of your mortgage or you shorten the term of your mortgage the Effective Rate may be slightly higher.
LOOKING FOR THE LOWEST MONTHLY REPAYMENTS?
It is important to understand that if you are looking for a home loan with the lowest possible monthly repayments then an Effective Rate Home Loan may not be for you. The one thing you can be sure of is that if you don't have an Effective Rate Home Loan you will be pay much more interest and your loan term will remain 30 years.
CALCULATOR: Compare any full featured standard variable home loan* with an Effective Rate Home loan using the calculator to the right.
Simply enter your loan amount and then the standard variable rate you'd like to compare.
Click here to submit an enquiry and start saving
* Exclude any limited offer home loan, fixed rate or honeymoon rate offers.
This move shows in interest rates as at December 2008