Premium

Description

The Premium is a fully transactional loan aimed at clients who want to pay off their loan sooner through the use of an offset account, yet maintain flexibility.  It combines a fully featured home loan with all the benefits of a 100% offset account and multiple account options meaning salary and other funds can be paid directly into the loan.  The overall loan term and amount of interest paid can be reduced as the interest is calculated daily on the net loan balance.

The balance in the offset account accrues interest at the same rate as the home loan and reduces the total interest payable on the loan.  This means that the client only pays interest on the balance of the home loan less the funds in the offset account on any given day.  Funds in the offset account can be accessed using the cash card, internet and phone access, cheque book, BPAY® and third party direct debits.

Purpose

Standard residential loan purposes such as:

• Purchase or refinance an owner-occupied or investment property
• Equity loans for investment or personal purposes

Loan term

30 years maximum

Minimum loan amount

$150,000

Maximum loan amount

$2,000,000. Location and LVR restrictions apply.

Key features

• Redraw
• Offset account
• Cash card
• Deposit card
• Cheque book
• Unlimited accounts after settlement (fees may apply)
• Online and phone banking
• Expanded income verification available

Interest rate options

Loan account

• Variable rate
• One to five year fixed rates

Offset account

• The Premium home loan product comes with one offset account per loan facility.  This offset account is linked to one loan account of the client’s choice.  When calculating interest payable, the balance in the offset account is deducted from the outstanding debit balance in the linked loan account.  Interest is only charged and payable on the net difference thereby reducing the total interest payable on the loan.
• Where the balance in the offset account exceeds the debit balance in the loan account it is linked to, the balance cannot be used to offset the debt in any other loan account

Interest

• Calculated daily on closing balance.
• Charged on the first business day, monthly in arrears.  Calculated by deducting the daily interest calculation of the offset account from the daily interest calculation of the loan account.

Repayment types

Principal & Interest

• Principal & interest repayments are required during the full term of the loan

Interest only

• Up to five years interest only, converting to principal & interest for the remainder of the loan term. Maximum LVR of 90%.
• Following the initial interest only term of five years, loans may be extended to maximum ten year interest only term from the original settlement date, subject to meeting certain lending criteria. A product variation fee may apply.

Changing repayment types

Principal & interest to interest only:

• A client whose loan was originally established as principal & interest, can convert from principal & interest to interest only repayments (subject to LVR).  A product variation fee may apply.
• A client whose loan was originally established as interest only and requested a shortened interest only term, can convert from principal & interest back to interest only if within five years from the date of original settlement.  A product variation fee may apply.

Interest only to principal & interest:

• A client can convert from interest only to principal & interest repayments at any time.  A product variation fee may apply.

Redraw

Available.

Loan variations

Are permitted and a product variation fee may apply.  Macquarie will cover up to $600 in variation-related third party costs (one valuation up to $300 and solicitor costs up to $300.  Excludes any statutory costs).

Loan statements

Bi-annual statements to 30 June and 31 December.