Low cost home loan

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Low Cost Home Loan FAQs

Read our most frequently asked questions below

Can I split my home loan between variable rate products?

We understand that our customers have unique financial needs and preferences, which is why we offer a range of home loan options that cater to different requirements. With our flexible approach to lending, we give you the freedom to choose how you structure your loan, including the option to divide your home loan into multiple accounts across different variable rate products. This way, you can access the different loan features in a way that suits your financial situation and goals. For example, you might want to benefit from a low interest home loan like our No Frills Home Loan, but also want access to helpful features available with our Low Cost Home Loan.

How long will it take for my home loan application to be approved?

Online Applications: Once you've submitted your application and supporting information, conditional approval is usually obtained within 48 hours, subject to satisfactory credit checks and verification of financial and property information.

Applications over the Phone: Once you've submitted your application and supporting information, conditional approval is usually obtained within 5 business days, subject to satisfactory credit checks and verification of financial and property information.

Applications made in Branch: Once you've submitted your application and supporting information, conditional approval is usually obtained within 5 business days, subject to satisfactory credit checks and verification of financial and property information.

Your Home Loan Specialist can provide more information about approving your loan.

You can learn more about the home loan application process on our website.

What is an offset account?

Offset accounts work as a transaction account linked to your Low Cost Home Loan. The money in that account ‘offsets’ daily against the balance of your loan. So, it reduces the interest you need to pay because interest is only charged on your net balance (i.e. your overall loan balance minus your offset account balance). In other words, the loan ‘thinks’ you've paid that money off your loan already, reducing the interest charged accordingly. Qudos Bank offers multiple offset accounts on a number of home loans, check with your lending specialist.

What are the main benefits of the Low Cost Home Loan?

Some of the main benefits of the Low Cost Home Loan include:

• Competitive Interest Rates: the Low Cost Home Loan is one of our low interest home loans. Choosing a loan with lower interest rates than other types of home loans could help you save money on your home loan repayments over time.
• Flexible Repayment Options: the Low Cost Home Loan offers a range of repayment options, including weekly, fortnightly, or monthly repayment options. This allows you to choose how frequently you want to pay off your home loan to suit your current financial budgeting needs.
• Additional Repayments: the Low Cost Home Loan allows you to make additional repayments without incurring any extra fees or penalties. This means you can pay off your loan faster and save money on interest over the life of the loan.

Can the Low Cost Home Loan be the right product?

The Low Cost Home Loan is a great option for borrowers who want a   low variable interest rate and access to a range of home loan features that are usually included in package products (and would typically incur a package fee). It’s often particularly ideal for first-time home buyers, those who are refinancing their home, or those who want to keep their home loan costs low. However, it’s important to note that this loan may not be suitable for everyone, and there may be other loans available that better suit your needs.

At Qudos Bank, we offer a range of low rate home loan options, including variable rate loans, fixed rate loans, and package loans. We encourage you to compare all of our home loan options to determine which loan is right for you. It’s important to consider more than just which options have low home loan rates when deciding on the most suitable loan. You can compare home loan options on our website.

What are Repayment holidays?

Repayment holidays, also known as payment holidays or loan deferment, are a feature of some low rate home loans that allow borrowers to temporarily stop making repayments on their loan. This is typically offered by lenders for home loans, personal loans, and other types of consumer loans.

During a repayment holiday, the borrower does not need to make any repayments on the loan for a set period of time. Depending on the lender and the type of loan, repayment holidays may be available for a period of several months or even up to a year.

By taking a repayment holiday, borrowers can free up some cash flow and use the money for other pressing needs. It’s important to note that repayment holidays are only available when your repayments are in advance, are not available on interest only loans, and applications are subject to the lender’s approval.

How does Qudos Bank calculate interest for my Low Cost Home Loan?

At Qudos Bank, we use a daily interest calculation method to determine the interest charges for your Low Cost Home Loan. This means that the interest on your loan is calculated on a daily basis, based on the outstanding balance of your loan.

Our loan interest calculation method allows for up to ten decimal places in rounding the daily interest rate. This level of precision ensures that interest is calculated as accurately as possible, and that you’re only charged the appropriate amount of interest on your loan.

It's important to note that the interest rate on your Low Cost Home Loan can vary over time, depending on market conditions and other factors. We encourage you to stay up-to-date on your interest rate and to speak with one of our lending specialists if you have any questions or concerns.

What are the four things you need to qualify for a mortgage?

To qualify for a mortgage, there are several requirements you typically need to meet. The specific requirements may vary depending on the lender and the type of mortgage, but generally, you’ll need to have:

• Proof of income: You’ll need to demonstrate that you have a steady source of income that is sufficient to cover the mortgage payments. Lenders will typically ask for proof of income, such as pay slips, tax returns, and bank statements.
• Good credit history: Lenders will evaluate your credit history to determine whether you’re a responsible borrower. They’ll look at factors such as your credit score, payment history, and outstanding debts.
• Adequate deposit: You’ll typically need to provide a deposit towards the purchase price of the home. Most lenders require a deposit of at least 5% of the home's value, although a higher deposit may be required to avoid paying Lenders Mortgage Insurance (LMI).