Loan to Valuation Ratio. Expressed as a percentage of the value of your house. Calculated by dividing your loan amount/s by the value of the security property/ies e.g. an $80,000 loan against a $100,000 house is at 80% LVR.
If approved, you can borrow up to 95% of the value of your property (Loan to Value Ratio “LVR”) subject to lending criteria being met but you may have a different interest rate or need to pay Lenders Mortgage Insurance if your loan amount is more than 80% of the value of your property. The premium for Lenders Mortgage Insurance may be able to be added to your loan (up to 97% LVR).
Your repayments take into account the annual interest rate, loan term, repayment frequency and loan amount and whether you wish to pay all of the principal back (Principal and Interest) or just the Interest (Interest Only).
Principal and Interest (P&I) loan repayments are calculated so that you pay back all of the money you borrowed (principal) and all of the interest that will be charged over the term of your loan. When the term ends (usually 30 years) you will end up with a nil balance on your loan.
An Interest Only loan allows you to pay only the interest on the loan, rather than paying back both principal and interest. At the end of the interest only period (usually five years) you will still owe the full amount you originally borrowed. The advantage with the interest only feature is that the loan repayments are lower during this period. Interest Only loans are popular with investors who are planning to sell the investment property at the end of the term.
Interest is calculated on the daily outstanding balance of your loan and charged to your loan account monthly. You can reduce the interest you will pay on your loan by making extra repayments or depositing additional funds into your loan account to reduce your daily balance (Origin does not charge you for this). You may be able to redraw these funds when you need them depending how your Origin loan is set up.
Yes. Once approved, it is really easy. Our loans are designed to allow you to access the equity you have built up in your property (that is the difference between what your house is worth, and what you owe). Depending on your circumstances, you may be able to use the funds to acquire other assets such as shares or an investment property, even a new car or a holiday.
Yes. You can make extra repayments by increasing either your direct debit repayment or your salary credit amount, via internet or telephone banking. We do not charge you for making extra payments on a variable rate account.
If you have made extra repayments to your home loan you can ‘redraw’ these funds for your own use. While the funds are in your loan account, they will be reducing the interest that you will pay and you can withdraw these funds easily when you need them.