Premier Package Home Loan

Principal and Interest

Interest only - Construction loans

Principal and Interest

LVR up to 80%

LVR above 80% - 90%

LVR above 90%

One-off Fees

Ongoing Fees

If you choose a variable interest rate home loan, the Premier Package Home Loan does not have a minimum or maximum loan amount.

If you choose a fixed rate home loan, the Premier Package Home Loan has a minimum $50,000 loan amount and no maximum loan amount.

Yes, the Premier Package home loan is available for both owner occupied loans (i.e. you live in the property) and investment property loans.

The home loan application process can differ slightly depending on your circumstances and where you choose to apply for your loan. Below is a general overview of the process. 

If you are applying for a new loan:

1. Apply to obtain pre-approval. This generally takes 48 hours if you submit all the required documentation.

2. Find, secure a property and pay your deposit.

3. We’ll organise a valuation on the property to ensure the loan-to-value ratio is sufficient which can take up to 1 week. If the valuation meets criteria, your loan will be formally approved.

4. Review, sign and complete documentation (related to title of the property and the home loan contract relating to finance)

5. Settlement: We’ll work closely with you to ensure that everything is signed and ready prior to settlement date.

If you are refinancing an existing loan:

Refinancing is similar to applying for a new home loan. The first step is to choose a home loan and submit an application.

Once approved, you’ll need to contact your current bank to obtain a discharge authority form for us to finalise the switching process. You’ll also receive your mortgage document, which you’ll need to have witnessed when you sign it.

You can see if switching your loan with another (i.e. refinancing) is the right option by weighing up if the savings are worth doing so. Contact us to find out how much you could save on your home loan with Bank First.

A Home Loan Key Facts Sheet is an easy way to help you understand and compare home loans.

Generate a Home Loan Key Facts Sheet
A Key Facts Sheet provides you with loan information in a standardised format which allows you to compare different home loans.

Variable Rate

A variable rate is a fluctuating rate that can go up or down. The benefit of a variable rate is that you can usually make extra repayments, which reduces the interest you’ll need to pay, and usually the term of your loan. If interest rates go down, you’ll benefit immediately from reduced repayments, however, if interest rates go up your repayments will also increase.

Fixed Interest Rate

This is locking in one rate for a fixed period of time. The major advantage for most people on a fixed interest rate is that it’s predictable - you’ll know exactly how much your repayments will be. If interest rates go up, you won’t be affected and will keep paying the fixed rate for the duration of your fixed rate term (usually this is between 1 and 5 years). This will protect you from any interest rate rises and will give you control over your home loan repayments as you will know exactly how much you will be paying for that selected term.

Split Loans

At Bank First, you’re able to fix a portion of your home loan, and keep some of it on a variable rate. This might be an option for you to take advantage of the best of both worlds – you can safeguard against future rate rises but also have the ability to make extra payments.

The Premier Package Home Loan offers variable, fixed and split loan options.

The comparison rate for home loans is based on a standard scenario ($150K loan over 25 years) that all lenders use, which includes all interest rates, fees and charges which are known will occur during the term of the loan, so that buyers can compare a more accurate, like-for-like cost of the loan. 

The Loan to Value Ratio, or LVR, is the percentage of money you borrow for a home loan compared to the value of the property. It is calculated by dividing the loan amount by the value of the property. 

For example, if you wish to purchase a $500,000 property and have saved $100,000 as a deposit, you will need to borrow $400,000. As $400,000 is 80% of the property’s price ($500,000), this would mean an LVR of 80%. 

Lenders Mortgage Insurance (LMI) is a one-off payment that is generally required when the loan is in excess of 80% of the property value that you are purchasing. It protects the lender in the event that the borrower defaults on the loan and there is still money owing after the property is sold. 

Depending on the value of the property and the loan to value ratio, Lenders Mortgage Insurance may be several thousand dollars. However, depending on your circumstances, this may enable you to get into the property market sooner. 

If you work in the education or healthcare sectors, it’s possible you could take out a home loan up to 85% LVR and avoid paying Lenders Mortgage Insurance. 

Find out more about Waiving LMI premiums for teachers and healthcare sectors.

In some cases, you can choose to only pay the interest charged on your loan, instead of the principal and interest. This type of loan will reduce the amount of your repayments during the interest only term, but the principal balance (what you borrowed) remains the same and is still owing when the interest only term is over. It’s important to note that interest only loans are not available to all borrowers.  

Both principal and interest loans and interest only loans are available on the Premier Package Home Loan. 

An offset account allows you to use your savings to reduce the interest on your loan. When you link a transaction account to your home loan, the balance is offset against the amount owing on the home loan. 

For example, if you borrowed $200,000 and the balance of the nominated offset account is $20,000, interest will be calculated on $180,000. Keep in mind, offset is not usually available during fixed rate periods and interest is not separately earned on the savings account. 

Less interest means you’ll be paying more off the principal, and chipping away at the lifetime of the loan.

With the Premier Package Home Loan, you are able to have multiple offset accounts. 
Note that the offset feature is not available for fixed rates.

Redraw allows you to withdraw from any additional ‘top-up’ repayments (over and above the minimum required) you make. This means you can make extra repayments to reduce the interest payable on the loan, whilst allowing future access to these funds if the need arises.

Bank First does not charge a redraw fee.