Rates and fees.
A fixed rate locks in an interest rate, for a specified period (up to five years), regardless of changes to interest rates. This means your loan repayments also remain the same over that fixed period of time.
A variable rate means your interest rate can change. If interest rates go up, your repayments will be higher. If they go down, they’ll be lower.
Principal and interest repayments mean you’re paying down your principal loan amount, as well as the interest charged on your loan. It’s the fastest way to pay off your loan.
Interest only repayments mean you’re only paying the interest charged on your loan, but not reducing your principal loan balance. It means your repayment amount will be lower, but it will take longer to pay off your loan.
After the fixed term or interest only period, your loan will switch to a roll-to variable principal and interest rate. For our live-in 1 & 2 year fixed loans, the loan switches to our variable principal and interest rate of 3.64% p.a.. For all our other fixed loans and our variable interest only loans, the loan switches to our roll-to variable principal and interest rate of 3.80% p.a. (live-in) and 3.91% p.a. (investment) at the end of the fixed term or interest only period. Our roll-to rates are different to our regular variable rates because there are additional costs and risks with these products, which means you pay a small premium for the benefit (a slightly higher roll-to rate). We know it’s confusing to have different rates, which is why we’re taking the time to explain this (unlike other lenders). But please feel free to get in touch with us if you have any questions.
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Fees and charges.
There are no fees associated with applying for a Tic:Toc loan online. Zip, nada, zilch.
We absorb the typical fees related to having a human assessing your application, because we believe that, contrary to popular belief, applying for a home loan should be uncomplicated and as automated as possible.
Unfortunately we can’t do anything about pesky government charges, and you’ll need to allow for these.
They’re current as of 27 August 2018; available to all home loans approved on or after this date, and they can change.
We relentlessly review our rates to make sure we stay competitive and offer more Australians a better deal on their home loan.
How do we work out our comparison rate?
We work out our comparison rates based on a $150,000 loan over 25 years.
For fixed loans, the loan switches to a variable principal and interest rate at the end of the fixed term.
For our live-in 1 & 2 year fixed loans, the loan switches to our variable principal and interest rate of 3.64% p.a.. For all our other fixed loans and our variable interest only loans, the loan switches to our roll-to variable principal and interest rate of 3.80% p.a. (live-in) and 3.91% p.a. (investment) at the end of the fixed term or interest only period. If the interest only period is not specified, the comparison rate is calculated on a one year period.
The comparison rates also factor in our fees associated with applying for the loan (none), our fees associated with having the loan (none) and our fees associated with leaving the loan (a $325 discharge fee).
What about for a different loan?
If the loan has a different term or additional features, such as an offset account, the comparison rate would be different because we charge $10 a month for this feature. Or to say that in the way we’re legally obligated to (the aggressive way): WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
But no need to speculate. Test out what your rate will be based on your own situation and the loan you want.