How much can you borrow?

If you are buying property, BankDirect can lend up to 80% of its value (depending on the type of property offered as security).

How do you want to pay back your loan?

What are your plans for your future? The answer to that question will influence how you repay your loan.

If you want lower repayments, you may want a loan with a longer term.

If you want to pay less interest overall and can afford higher repayments, you could choose a shorter term.

The term and the repayment structure you choose will make a big difference to the way you repay your loan.

Table repayment structure

This is the most common type of repayment structure where you pay regular even amounts, subject to interest rate changes. If your table loan is for a long term (say 25 years), your early repayments are mostly interest with a small amount of principal. As you pay off your loan, this ratio gradually reverses.

Reducing repayment structure

You pay the same amount of principal in each instalment. As the loan balance reduces, so does the amount of interest you pay. Therefore the size of your instalments reduce over the term of the loan.

Zero Start period

With a Zero Start option your instalments consist of interest only for up to the first 5 years of your loan. After your interest only term has ended, you start paying principal as well.

Low Start period

With the Low Start option your instalments consist of lower principal repayments for up to the first 5 years of your loan. 

Which interest rate option can you choose? Fixed or variable?? Do you want the security of a set rate that ensures consistent repayments for a fixed period? Or do you prefer the flexibility of variable rates? Depending on the BankDirect loan you have, you can choose one of the following interest rate options.

Fixed rate

Your interest rate is fixed for a pre-determined period. If market rates rise or fall during your fixed rate term, your interest rate will stay the same, and so will your repayment amounts (unless you change the term of your loan).

When the term of your fixed rate ends, your loan will automatically switch to the variable rate available at the time (see below). For a small fee, you will have the chance to re-set your loan again at the fixed rate available on the day. Either way, BankDirect will let you know when your fixed rate term is due to expire.

Note: with a fixed rate loan, penalties will be incurred for making lump-sum payments or repaying the loan early during the fixed rate period.

Variable rate

Also known as a floating rate. Your interest rate, and therefore your repayments, will fluctuate with market conditions. If the interest rate falls, so does your repayment amount. When the rate rises, your repayments will increase with it. Alternatively you can request your repayment to stay the same, and decrease the term of your loan instead.

If interest rates are due to change, BankDirect will let you know what your new repayments will be and when they take effect.

Choose your payment frequency

Whether you're paid fortnightly or monthly, depending on the loan type, with BankDirect you can choose a payment frequency that coincides with your salary cycle.

What costs are involved to apply for a loan?

Apart from the loan processing fee and your own legal fees, any other fee you pay depends on the amount of money you wish to borrow compared to the value of your security. For a home loan, if your deposit is less than 20% of the value of the property you wish to purchase you may be charged a low equity margin.

Say you have a $45,000 deposit, and BankDirect lends you $255,000 to buy a home valued at $300,000. Because your deposit is less than 20% of the value of the property, a low equity margin will apply. However, if you have a $90,000 deposit and BankDirect lends you $210,000, a low equity margin will not apply, as your deposit is over 20% of the value of the property. For further information on the low equity margin, see our rates page.

The loan processing fee will be deducted at the time of the advance. When you apply you have the choice to add the fees to the total loan amount (with the exception of the Overdraft facility).