What other products should I get?
There are many other financial services products that compliment a loan and many
optional loan features that can be activated to benefit your particular circumstances.
Products to consider when getting a loan include:
- Home and Contents Insurance. Lenders will insist that properties be insured
for their replacement value when they are offered as security.
- Life, Disability, Critical Illness and Temporary/Permanent Disablement Insurance
to ensure that the loan repayments can still be met or the loan can be paid out
in full if an insured event was to occur.
- 100% Offset Account which is a separate transaction account that would normally
earn interest on funds deposited into the account but whose balance is used to reduce
the amount owing on the loan. Interest is then charged on the net loan balance,
i.e. the Loan balance minus the 100% Offset Account balance saving you money.
- Periodical Payment / Direct Debit, is a service provided by your bank to
automatically pay your loan repayments from a transaction account on a regular basis
making loan repayments conveniently for you.
Optional Loan Features to consider when getting a loan include:
- Loan Redraw, allows you to repay lump sums into your loan and then redraw portions
when required. You benefit because interest is calculated and charged on the reduced
loan balance due to the lump sum repayment. However these funds remain available
for redraw at any time.
- Direct Salary Crediting, allows all or a portion of your salary to be paid directly
into the loan saving you time and possibly interest due to the timing of receipt.
Funds can then be redrawn when required by utilising Loan Redraw.
- Increase the Frequency of Repayments, make your loan repayment as regularly as you
like (and increase the amount paid) to really save interest over the term of the
- Other loan Features to consider: Fixed or Variable Interest Rates, Split Loans and
Loan Packages that include several products which normally have discounts.