Are you looking for a low variable home loan interest rate with offset account?
Virgin Money has revamped their home loan offering, to give you what's probably the lowest home loan variable rate with offset account and no annual fee, and it's available for a modest loan size.
As of 2/11/2022, they offer the following variable rates:
Owner Occupied P&I:
- 4.19% (CR 4.35%) if the loan is $500k+ and the LVR is <=60%
- 0.05% dearer if the loan is under $500k
- 0.05% dearer if the LVR is 60%-80%
Investment P&I:
- 4.44% (CR 4.59%) if the loan is $500k+ and the LVR is <=60%
- 0.05% dearer if the loan is under $500k
- 0.10% dearer if the LVR is 60%-80%
Investment I/O:
- 4.64% (CR 4.68%) if the loan is $500k+ and the LVR is <=60%
- 0.05% dearer if the loan is under $500k
- 0.10% dearer if the LVR is 60%-80%
They will stop offering refinance cashback, but if you get the loan through us, we can offer a broker cashback paid from our pocket, as follows:
- 0.30% of your net loan balance if it's $500k+ (for example, $1500 for $500k loan, $3000 for $1m loan)
- Terms and conditions on our previous OzBargain post (but now we can also give you $500 fixed amount if your net loan balance is under $500k but at least $250k)
Virgin Money indicative fees:
- $300 application fee
- $150 settlement fee
- $0 annual fee
- $10 monthly fee for each loan account
- Standard third party costs apply if you refinance, namely the discharge fee for your current bank, and the land title office cost
Please note, today (1st November) the RBA increased the cash rate by 0.25%. Along with other banks, Virgin Money is likely to increase their variable rate soon.
Although we cannot predict what Virgin Money will do, they're still likely to be a cheap long-term loan solution, a genuine alternative to the other banks offering cashback with higher interest rates, and some online lenders who delay the rate increases by 1-2 months & still advertise the lower rate.
If on your last refinance your borrowing power was already a bit stretched, now might be a good time to refinance to a low-rate lender, as your borrowing power will drop further if interest rate goes up again (so there's possibility you cannot refinance again with the same loan amount, and you might be stuck at the higher interest rate).
Main attraction from this offer is probably that you can have an offset account. This may allow more flexibility with your tax deduction, if it's an investment property or may become an investment property in the future (please consult your accountant). Many of the cheap loans don't have offset account.
Contact me for a no-obligation chat 😀
Arman Soetanto
M: 0431 825 128
E: [email protected]
W: www.lendingclinic.com.au
Lending Clinic Pty Ltd (Credit Representative Number 511270) is authorised under Australian Credit Licence Number 384704
The rate is great, anyone use Virgin home loan before?
Update: Checked their website, looks like the rate is already increased. The rate mentioned in this post is lower than on their website. For example, PI <60%, rate is 4.49% not 4.19%