Defence Bank Ultimate Essentials I/O Fixed
Fixed rate
The cream of the crop when it comes to our range of home loans on offer.
- Interest rate a year, from
- 7.04%
- Comparison rate
- 7.21%
- Upfront fees
- Not published
- Annual fee
- $96
- Monthly fee
- Not published
Monthly repayment
$600,000 over 30 years
What it would cost
At the lowest rate of 7.04% (1 year fixed, investment, interest only). The rate you are offered depends on your deposit and the loan you choose, and upfront fees are not included.
- Monthly repayment
- $3,520
- Total repayments
- $1,867,200
- Interest
- $1,267,200
Rates
Every rate Defence Bank publishes for this loan. LVR is the loan as a share of the property's value: 80% for a 20% deposit.
| Rate | Property | Repayments | LVR | Interest rate | Comparison rate |
|---|---|---|---|---|---|
| 1 year fixed | Investment | Interest only | Any | 7.04% | 7.21% |
| 2 year fixed | Investment | Interest only | Any | 7.06% | 7.21% |
| 3 year fixed | Investment | Interest only | Any | 7.17% | 7.23% |
| 4 year fixed | Investment | Interest only | Any | 7.17% | 7.23% |
| 5 year fixed | Investment | Interest only | Any | 7.19% | 7.24% |
Comparison rates are for an example loan of $150,000 over 25 years. WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Fees and features
Fees
- Upfront fees
- Not published
- Annual fee
- $96
- Monthly fee
- Not published
Features
- Offset account
- No
- Redraw
- No
- Highest LVR
- 95%
- Loan amount
- Not published
How it compares
Against the other home loans we compare, for a home you live in with a 20% deposit. Typical means the middle half of them.
Annual fee
$96
A typical annual fee is $350.
Smallest deposit
5%
Most loans need at least 10% of the price.
Pros and cons
Pros
- Extra repayments. Paying more than the minimum pays the loan off sooner and cuts the interest you pay.
- Fixed rates on offer. You can fix for 1 to 5 years if you'd like repayments that don't change for a while.
- Interest only available. Some investors use it to keep repayments down for a few years, though the balance doesn't fall in that time.
Cons
- No offset account. Your savings can't reduce the interest unless you pay them into the loan.
- An early repayment fee. Paying the loan off early or refinancing can cost a fee, which cuts into what you save by repaying sooner.
- A $20 late payment fee. Setting up automatic repayments avoids it.