Flexi First: Basic variable home loan

Variable interest rate home loans are designed for people who need flexibility in their home loan, and want the interest on their loan to be in line with the current market.

There are no fees for making lump sum repayments, no fees redrawing funds, and no break fees if you change your loan.

Here’s how our basic variable Flexi First Option Home Loan compares to our variable Rocket Repay Home Loan with an optional offset account.

Because interest rates go up and down, if the interest rate goes up you may pay more in interest and your repayments could increase.

If you need help deciding what loan might work best for you, simply start by applying. In the next step in the application process, you’ll talk with one of our home lenders. They’re qualified advisers and they’re there to help. They can help you choose the loan that might suit you best.

A fixed interest rate stays the same for a fixed term (usually 1 – 5 years) while a variable rate might go up and down during same period in line with the market rate.

The best rate will depend on your circumstances and what you want out of your loan. A fixed loan is designed to give people more certainty, while a variable loan is designed to give more flexibility.

If you need help deciding which loan might work best for you, simply start by applying. In the next step in the application process, you’ll talk with one of our home lenders. They’re qualified advisers and here to your questions. They can help you choose the loan that might suit you best.

Save a little more before you buy

If you have a 10% deposit, you might still be able to get a home loan. However, you may need to pay Lenders Mortgage Insurance.

If you wait a little longer to save a 20% deposit on your new home, you could avoid paying Lenders Mortgage Insurance.

To see how long it might take you to save for a larger deposit, check out our Home Saver Calculator.

If you're already saving, you may start looking at buying once you have around 10% of the purchase price. However, if you have less than 20% of the purchase price, you may need to pay Lenders Mortgage Insurance. It may mean waiting a little longer, but if you can save a 20% deposit on your new home, you could avoid paying Lenders Mortgage Insurance.

Pay fortnightly versus monthly

If you pay fortnightly, you’ll make 26 repayments each year. That’s the same as making 13 monthly repayments every year, rather than 12. That extra monthly repayment could help you own your home sooner. If you’re paid fortnightly, repaying fortnightly might also make budgeting easier.

Benefit from extra and lump sum repayments

Any extra payments you make will reduce the balance of your loan and the interest charged. Lump sums such as a tax return, a bonus from work, a gift or an inheritance can help you save on interest and shorten the life of your loan. Even paying a little bit extra on a regular basis can make a difference in the longer term. Rounding up your home loan repayment just a small amount can make a dent on your home loan interest. For example, consider a loan amount of $300,000 at 5% over 25 years. If the monthly repayments of $1754 were rounded up to $2000 per month and continued until the end of the loan term, the loan would be repaid around 5 years early, and the interest owed reduced by around $54,000.

Regularly review your home loan

Over time, your personal situation or financial needs may change. It makes sense to review your loan regularly to ensure you're only paying for the features or benefits you actually use or need. We can help to assess your requirements and ensure you’ve got the products and services that are right for you at each stage of your life.

If you have a new arrival, you can reduce your repayments by up to 50% for up to 12 months while on parental leave (subject to approval).