Horizon Bank Personal Loan Secured by Mortgage
- Interest Rate (p.a.)
- 6.29%
- Comp. Rate (p.a.)
- 8.25%
- Min Loan Amount
- $500
Summary
Use your equity to get a lower interest rate. Interest charges and fees apply.
This personal loan from Horizon Bank allows you to use the equity in your home to get a lower interest rate and longer terms on your personal loan. The interest rate is 6.29% p.a., with terms up to 5 years. Although the loan doesn’t charge monthly or annual administration fees, you will be charged an establishment fee and interest.
Details
Product details
| Product Name | Horizon Bank Loan Secured By Mortgage |
| Interest Rate (p.a.) | 6.29% |
| Comp. Rate (p.a.) | 8.25% |
| Interest Rate Type | Variable |
| Min Loan Amount | $500 |
| Max. Loan Amount | $30,000 |
| Loan Security | Secured |
How does the Horizon Bank Personal Loan Secured by Mortgage work?
To secure this loan, you can use the equity in your home. In return, you get a lower interest rate. You can use the loan to purchase a vehicle, fund home renovations, consolidate debt, go on holiday or purchase new appliances for your home. The interest rate is variable and can fluctuate based on the market rate.
What features does the Horizon Bank Personal Loan Secured by Mortgage offer?
- Secured loan. You need to use the equity in your home as collateral for this loan. You will receive a lower interest rate in return.
- Variable rate. Your monthly interest repayments may fluctuate based on the market rate. It can go up if the rate increases or go down if the rate decreases.
- Terms up to 5 years. Your loan term can range from up to 5 years.
- Flexible repayments. You can choose from weekly, fortnightly or monthly repayments, based on what suits you.
- Additional repayments. You can make additional and lump-sum repayments.
- Free redraw. You can redraw your additional repayments without paying a fee.
- No early repayment fee. You can repay your loan early without incurring a penalty.
- No monthly or annual admin fee. You won't have to pay monthly or annual administration fees.
How much does the Horizon Bank Personal Loan Secured by Mortgage cost?
The costs associated with this loan include the following:
- Loan principal
- Variable interest of 6.29% p.a.
- Establishment fee of up to $250
This loan does not charge monthly or annual administration fees. The comparison rate, which includes interest and fees, is 8.25% p.a.
What are the pros and cons of the Horizon Bank Personal Loan Secured by Mortgage?
Pros.
- No administration fees. You won’t have to pay monthly or annual administration fees for this loan. This helps keep down the cost of your loan.
- Additional repayments, free redraw and early repayment. You can make unlimited additional repayments, redraw them for free and repay your loan early without penalty.
Cons.
- Risk of repossession. Secured loans come with the risk of your asset being repossessed if you default on your loan.
- Difficult to budget repayments. Variable rate loans can make it difficult to predict your repayments as they may fluctuate on a monthly basis.
Am I eligible for the loan?
To be eligible for the loan, you must meet the following criteria:
- Be a member of Horizon Bank
- Be at least 18 years old.
- Be a resident of Australia
- Be employed or receiving a regular income
- Not be bankrupt, insolvent or have any defaults on loans.
- Have a mortgage to be used as security
- Have a good credit history
How do I apply for the loan?
You can apply for the loan online, through the Horizon Bank website. You will need to provide details on your employment, income and living expenses, your assets (including land, house, contents, vehicles and savings) and your debts. Keep the documents in hand to make the process easier.
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