Everyday Variable Home Loan (Owner Occupied) ²¹³⁴⁵

Home Loan FAQs

• How do I transfer my existing home loan over to MoveBank?

  You can complete an online application form or speak to one of our Lending Specialists on 1300 362 216

• How much can I borrow?

  The amount you may be able to borrow is determined by your income, financial commitments, current savings, and your credit history.

  You can get an estimate of your potential borrowing power by using our Borrowing Power Calculator.

• What is a pre-approval?

  This is an indication of your ability to borrow. You may choose to see a pre-approval to understand your borrowing capacity, but it is not a guarantee of loan approval or offer.

• Can I get a home loan for investment purposes?

  Yes, you can get a loan for investment purposes. You can view our range of investment home loan products here.

• What deposit do I need when taking out a loan?

  Your deposit could range from 5% of the value of the property. However, Lenders Mortgage Insurance (LMI) may be required where you have less than 20% deposit.

• What is Lenders Mortgage Insurance?

  Lenders mortgage insurance covers MoveBank against a loss in the unlikely event that we have to exercise our right to sell the property due to ongoing default on loan repayments. You will need to have Lenders Mortgage Insurance if your loan amount is more than 80% of the value of the property being used as security for the loan. Subject to a satisfactory evaluation of the property.

• What is the difference between fixed and variable rates?

  Variable rates can change anytime and will affect your regular repayments.

  A fixed rate has been fixed at a certain rate, so it stays the same for the entire fixed rate period. This means that your repayments also stay the same for the same 'fixed' period.

• What is a comparison rate?

  A comparison rate is designed to help you identify the true cost of a loan, by taking into consideration certain fees and charges as well as the interest rate. By considering all these factors you can better understand the overall cost, which is helpful when comparing loans offered by different financial institutions.

• How is interest calculated on a home loan?

  Generally, the interest cost  of your home loan is calculated daily on the outstanding balance of your loan. Interest is calculated daily and charged monthly.                                                                                                                                                                                 

  An example of how daily interst is calculated on a $400,000 loan with a fixed rate of 4% is as follows: 

  ($400,000 x 4%) / 365 days = $43.83 per day.                        

  Some loans will alow you to directly deposit extra money into your loan or offset account to reduce your interest payments. To determin the reapyments on your loan, see our home loan repayment calculator.

• What is a property valuation?

  A property valuation report is completed by a licensed property valuer. They will determine the value of a property through the use of data based on location, amenities, structural condition and recent sales of similar local properties.

• Do I need Building Insurance?

  Building insurance required to be taken out and note "MoveBank Ltd" or "MoveBank" as the interest party on a Certificate of Currency issued by your insurance company.                                                                                           

  Don't have insurance with MoveBank? We have partnered with CGU insurance to provide you with competitive insurance. Get a quote today!       

  If your property is part of a strata scheme then you will need to provide a copy of the body corporate/strata Certificate of Currency for the building insurance.

• Is a redraw facility available?

  Yes. You can redraw the advance loan repayments you have made on your loan. You can now access the redraw features directly from your loan's account screen.

• How do I redraw from a loan?

  You can redraw your advance loan repayments from your loan's account screen via the MoveBank App or Online Banking. You must make a transfer from your loan account to a transaction account first before making any external payments.

• Can I borrow more than what I have owing on my current loan?

  Yes! However, you will need to consider how much you can borrower first. In a nutshell, your borrowing capacity is determined by your income minus your financial commitments. Your financial commitments include items such as your living expenses and debts such as credit cards, other loans and interest-free arrangements. If you would like an estimate of how much you could borrow, check out our Borrowing Power Calculator.

• How can refinancing help me buy an investment property?

  If you’ve been paying off your mortgage consistently over the past few years, you may be able to use the equity in your existing property to secure an investment property. Ideally, you should have 20 per cent of the investment property’s value as a deposit. If this option appeals to you, be sure to check out our range of Investment Home Loans for more information.

• Will it cost me to refinance my home loan?

  In short, yes. However, the long-term rewards often outweigh the initial investment. Here are the potential costs you'll need to consider: 

  • Break fees: If you are opting out of an existing fixed rate loan, there are likely going to be fees associated with "breaking" your fixed rate. You should consider these and weigh them against the long-term savings of refinancing. 
  • Valuation fees:  When you refinance, you may need to have your property professionally valued to ensure there is sufficient security for the loan amount. In Australia, valuation fees generally range $300-$800 depending on the location of the property.
  • Establishment & ongoing fees: Be sure to check out any establishment or application fees, together with ongoing fees that may apply to your new loan. Compare everything against the interest rate savings, which will generally outweigh the cost of refinancing your loan.
• Can I make additional payments?

  Yes, you can make additional payments to your MoveBank loan at any time during the month. Making additional repayments will reduce your loan balance faster and reduce your interest charges. Please note, fixed rate loans have a total cap of $10,000.

• What does equity mean?

  Home equity is money that you can use to build your wealth. In essence, equity is the difference between your home’s value and the amount owing on your mortgage. For example, if your home is worth $550,000 and you have $325,000 owing on your home loan, the equity you can access is $225,000. You can use this equity to invest in other areas such as home renovations, a new car, shares or investment property.

• Can I get rid of my credit card debt when I refinance my home loan?

  Yes, you can! If you’re looking to refinance your home loan, why not use the opportunity to review your total financial situation? It means that you’ve only got one loan to pay and could mean big savings for you.

  When considering your options, it is important to look at the potential disadvantages involved. Remember that your mortgage is a long-term debt, whereas a credit card is usually a short-term debt. This could mean that you are paying more interest in the long term. However, by making extra repayments on your home loan you can ensure you’re making the most of your debt consolidation. Use our budget calculator to see where you might be able to free up cash in your budget for extra mortgage repayments.

• Can refinancing help me renovate my property?

  If you’ve been planning on renovating your property, why not consider adding the cost of the renovation on to the amount of your home loan refinance? Not only will you be acquiring a home loan that better suits your needs, but you’ll get the chance to complete those renovations you’ve been putting off.

• Should I go with a fixed or variable rate home loan?

  A fixed rate home loan means that you lock in an interest rate for a set period of time (usually 1, 2, 3 or 5 years). At the end of the fixed rate term, the loan will usually change to the standard variable rate offered by the lender. While fixed-rate home loans ensure that fluctuating interest rate rises do not affect you, this also means that rate drops won’t apply to you. Fixed rate home loans can also restrict features such as redraw facilities, extra repayments and break fees often apply.

  If you decide not to fix your home loan, your interest rate will move with the changes in market interest rates. This means that your interest rate could rise and fall over the life of your loan, which may affect your repayments. Variable rate home loans are generally more flexible with your repayments, redraw facilities and offset options. If you’re still unsure about which interest option is best for you, we recommend getting in touch with one of our lending specialists.

• Can I make a payment directly from my loan account?

  No, you are unable to make an external transfer (including BPAY) directly from your loan account. If you have funds in your loan account that are available for redraw, you will need to transfer these funds to a transaction or savings account first before making any external payments. 

  If you don't have a MoveBank transaction or savings account, you can open one in a few minutes after Moving Day via the new App or Online Banking.