Home loans - frequently asked questions

If you choose a variable rate home or investment loan, the interest rate can rise or fall depending upon the market and economic conditions. This can potentially impact your repayment amount. On a variable rate, you have the flexibility to make unlimited extra repayments without a fee applying, to pay down your loan sooner.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.

Yes, if you want to switch to a fixed interest rate, get in touch with us so we can talk through your options.

Yes, you can take advantage of this immediately. You'll be entitled to one free valuation each year when you increase your borrowings within your home loan package.

If you have registered for Internet Banking at People's Choice, you can set up a scheduled transfer to make recurring payments on your loan. Simply log in to Internet Banking, click on 'Transfer' under the 'Transfer/Pay' tab, click on the 'Schedule Payment' icon and follow the prompts.
Don't have Internet Banking? Call us on 13 11 82 or visit your nearest branch, so our friendly staff can ask you a few security questions to be sure we're talking to the account holder. We'll then be able to set up your Internet Banking and you can start checking in on your accounts online right away.
If transferring your payment from another financial institution, use the BSB 805 050, your loan account number and your surname for the account name.

The cost of LMI generally depends on the borrower's LVR (Loan to Value Ratio) and amount of money they need to borrow. The cost can vary depending on the lender. For more information on LMI when taking out a Home Loan at People’s Choice please speak to one of our Home Loan Advisers or call 13 11 82.

LMI is a once-off payment made by the borrower at the time of loan settlement, which protects the lender should the borrower no longer be able to meet their loan repayments.

Lenders Mortgage Insurance (LMI) is an insurance that protects the lender in the event of default by the borrower.

LMI may be required if the borrower doesn't have a minimum of 20% deposit to take out a home loan.

To avoid Lenders' Mortgage Insurance it is generally recommended the borrower keep their LVR (Loan to Value Ratio) below >80% plus any fees (conveyancer, stamp duty, building inspection, etc). If the borrower has a deposit of 20% or more of the property value, then they may not be required to pay LMI. For more information on whether you’ll need LMI please speak to one of our Home Loan Advisers or call 13 11 82.

If you choose a fixed rate home or investment loan you can make additional repayments, but if you make extra repayments of more than $10,000 in a year during a fixed rate period then a Break Cost fee will be payable. Redrawing the additional repayments is not permitted.

No, a redraw facility is not a feature of our Fixed Rate Home Loan. If redraw is a feature you would like in your Home Loan please consider either our Basic Variable or Standard Variable Home Loan. Alternatively, a split loan facility can provide you with the best of both loan types.

No, an offset account cannot be linked to our Fixed Rate Loan. Please consider either our Standard Variable or Home Loan Package Variable Loan if you would like an offset account feature. Alternatively, a split loan facility can provide you with the best of both loan types.

Yes, our Standard Variable Home Loan enables you to make unlimited extra repayments.

Yes, our Standard Variable Home Loan offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

An offset facility is available on our Standard Variable or Home Loan Package Variable Home Loan for an $8 monthly fee. An offset facility may help you reduce the interest payable and time taken to pay off your loan.

Yes, our Basic Variable Home Loan enables you to make unlimited extra repayments.

Yes, our Basic Variable Home Loan offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

An offset facility is not available for the Basic Variable Home Loan.

If an offset facility is a feature you would like in your home loan please consider either our Standard Variable or Home Loan Package Variable Loan. An offset facility may help you reduce the interest payable and time taken to pay off your loan.

Yes, our Variable Home Loan package offers you the flexibility to redraw any extra repayments you have made if you need the money back again. Redraw can be accessed online or via one of our branches.

Yes, our Variable Rate Package enables you to make unlimited extra repayments.

An offset facility is available on our Variable Home Loan Package. Linking an offset account to your loan may help you reduce the interest payable and time taken to pay off your loan.

There are no restrictions to the number of loans that can be incorporated under one $395 annual fee.

Our Home Loan Package offers variable, line of credit and fixed rate products.

At the end of the fixed period, the loan will revert to the variable rate package unless we agree otherwise, but you can talk to us if you’d like to re-fix your rate or review our other home loan options. If your loan reverts to the variable rate page, the interest rate applicable will be determined by your total loan balance at that time.

You can make additional repayments up to $10,000 per anniversary year. Break Costs may apply for repayments above the $10,000 limit. Redrawing the additional repayments is not permitted. Splitting your loan with a variable rate product can allow you to make unlimited extra repayments on the variable portion without incurring any Break Costs whilst still having the security of having a fixed interest rate on a portion of your loan.

Yes, you can take advantage of this immediately. You'll be entitled to one free valuation each year when you increase your borrowings within your home loan package.

This rate will be held for the 90 day ‘Approved Period’ from the date that the completed rate lock form is received by People’s Choice. This 90 day rate guarantee does not extend beyond the expiration date of the conditional loan approval.

If you choose a variable rate home or investment loan, the interest rate can rise or fall depending upon the market and economic conditions. This can potentially impact your repayment amount. On a variable rate, you have the flexibility to make unlimited extra repayments without a fee applying, to pay down your loan sooner.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.

You can choose from a range of product options such as Home Loan Package, Basic Variable, Standard Variable, Fixed or Line of Credit. You also have the option of selecting Principal and Interest or Interest Only repayment options.

Interest Only loans provide you with the option of making a repayment equal to the interest charge monthly. By selecting this product option and only paying the interest, you will not reduce the principal balance of your loan during your Interest Only period.

No, you cannot redraw during the construction period. If you choose a variable rate loan you will have a redraw facility available at the end of your construction period.

Your loan will be disbursed as the funds are required, so you'll only pay interest on the portion of the construction loan you have drawn down.

You can choose from a range options including:

 - Home Loan Package
 - Standard Variable
 - Basic Variable
 - Fixed

The construction period of your loan will be interest only. You have the option of selecting whether you will have a further interest only period at the end of your construction period, or if the loan reverts to principal and interest repayments.

The construction period for your loan is up to 12 months from the date of settlement.

A Bridging Loan can be taken for a maximum of 12 months.

Once your existing property is sold, the balance of your loan will reduce as per your contract and your loan will be converted to another product chosen by you and described in your contract.

A Bridging Loan is a short-term loan to assist you to purchase a new property pending the sale of your existing property. A Bridging Loan can help limit your expenses by offering interest only repayments while you sell your existing home. Once you have sold your existing property the proceeds of the sale are used to reduce your overall debt.

Our Bridging Loan is interest only, meaning a repayment only equal to the interest amount is required. We also offer the option of capitalising interest on top of your loan balance. Bridging Finance can be complicated so it’s best to discuss your loan requirements with home loan specialist who will be able to explain the options available to you.