With variable home loans your interest rates will go up and down over the life of the loan, generally in line with the official cash rate. Direct Credit offers many variable loan products, each with a range of flexible features. We help you in selecting the most beneficial for you. We’re here for you, not the shareholders of a corporation.
Frequently asked questions on Variable Rate Loans
Can I split my loan into multiple accounts?
One loan allows up to four loan accounts and comprises a mix of loan products. Very useful for borrowers wanting to distinguish between loan purposes and receive assistance with income tax preparation.
What loan size can I take out?
$30,000 up to $4,500,0000. Multiple securities apply over one million dollars.
What can I use this loan for?
Any worthwhile purpose. (All loans real estate secured)
Can I use this loan for an investment property?
Investment Property Loans have a maximum 90% LVR (Loan to Value Ratio) including Lenders Mortgage Insurance.
What are the terms for variable loans?
10, 15, 20, 25 or 30 years.
What variable products do you offer?
- Direct Variable Loans
Loan amount must be over $100,000 and loan to value ratio must not exceed 80% LVR. $120 Annual fee applies.
- Higher LVR Variable Loans
Minimum loan amount $100,000, and LVR available up to 95% maximum for Owner Occupied or 90% for Investment. Mortgage insurance can not be added above 95%.
- (Interest rate loading apply on all loans above 80% Lvr)
What are my options for making repayments?
Principal and Interest up to 30 Yrs or
Interest Only for 1 to 5 Years
Interest Only up to 10 years for Investment loans
Can I choose the frequency of my repayments?
Installments can be made weekly, fortnightly or monthly. Extra payments on variable rate loans can be made at any time.
How do I pay my loan?
- Direct debit: Pay your loan by direct debit monthly fortnightly or weekly.
(Principle and Interest loans – Interest only must be monthly)
- Direct Salary Crediting: Have your income directly paid into your home loan account and use your re-draw facility over the phone or via the internet to access your money when needed.
- B-Pay: You can B-Pay to your loan. Please call the office to obtain your B-Pay details
Are there any monthly or annual fees?
- No monthly administration fees (Annual fee applies to Direct Saver Loan)
- No fees charged on redraw
- No fees to withdraw cash at any NAB or Rediteller ATM from your variable loan.
What is the Loan to Value Ratio (LVR)?
Loan Amount Max LVR
$650,001 – $750,000 95% (5% Genuine Savings Required)
$750,001 – $1,000,000 85%
$1000,001 – $4,500,000 80%
Can I substitute a new property as security on the loan?
The security property can be substituted if required. Note there may be restrictions if loan size needs to be altered.
How will I receive my statements?
Free six monthly statements and free interim statements (issued upon request).
Can I convert my variable loan to a fixed rate loan?
All or part of the loan can be converted to a fixed rate loan at any time (subject to a 4 account maximum).
Can I make internal transfers between my split accounts?
Transfer funds to your other loans or to other accounts within the same loan.
Can I redraw on this loan?
Available as required ($50 min.), accessed over the phone or via the internet (variable rate only).
Can I reduce the principal?
Yes no limit, however ‘manual’ reamortisation requests apply.