Property option agreements

A property option agreement is a contract between a vendor and a buyer. Under this contract, the parties agree on a purchase price at a specified time in the future. The buyer also has to pay the vendor an option fee.

Property option contracts allow a seller to lock in a specific price in the future and give the buyer time to find the funds. These agreements are common between landowners and property developers wishing to develop a piece of land.

How do property option agreements work?

An option is essentially an agreement made between a vendor and a developer to exchange land for an agreed price at an agreed time. This allows the vendor to achieve a higher than market value for their asset. As option terms are normally around 24 months, the vendor doesn't have to move right away, which gives them time to find their next property. And it gives the buyer time to get the funds together for the purchase (and to lock in a price).

The agreement between the vendor and developer is secured with the payment of an option fee to the vendor. After this, a developer is granted a certain amount of time to improve the value of the land by obtaining a Development Approval (DA) from the local council.

Once the DA is in place, the value of the property is likely to appreciate, which will be reflected in the premium that the developer will offer you. The property is then sold in accordance with the original agreement, and construction can begin.

Option fee

The option fee is usually a percentage of the sale price, typically between 3% and 10%. This fee may form part of the deposit, and depending on the details of the contract, the fee may be refundable if the purchase falls through.

What are the different types of option agreements?

Option agreements usually contain 2 options: put and call options. Most agreements combine both.

• Call option agreement: A call option gives one party the right to buy something at a future point in time at a predetermined price.
• Put option agreement: A put option gives the seller the right to compel the buyer to purchase the property at a specific price in the future. However, it is uncommon for put options to exist independently of a call option.
• Put and call option agreement: Put options and call options are generally combined in one transaction. These give the beneficiary the right to require a grantor to buy or receive property at an agreed price. That is, the buyer can "call" for a contract to be entered into, or the seller can "put" the contract to the buyer.

How do developers use option agreements?

The strategy for the buyer is to add value to the property through upgrading or renovating the property. It also gives the buyer the ability to negotiate a low purchase price for the option. Then they sell the property for a profit.

This strategy requires a vendor who will agree to an option agreement. This often means a vendor who has had trouble selling the property or doesn't have the cash to improve the property.

Property option agreements can work out well for both parties. A savvy buyer can lock in a good price and then spend money to improve the property before selling it at a bigger profit – all before they even need to come up with the full purchase funds. For a vendor who has been unable to improve or sell the property themselves, an option agreement is their best chance to offload the property.

What are the pros and cons of using property options?

As a landowner, there are benefits and drawbacks to entering into property option agreements.

How do I minimise risk with an option agreement?

The most common ways of reducing investment risk are to conduct thorough research into the market as well as local council and property legislation that may affect the build. You also need to do your due diligence by forecasting financial and cash-flow viability with an accountant or financial planner and having the contract reviewed by a professional.

As an investor, you should be concerned with maximising the flexibility of the arrangements, without resulting in adverse tax and stamp duty ramifications.

• Managing liability. With regard to statutory warranties for residential development, consider the terms of legislation such as the Home Building Act 1989 and other relevant legislation.
• Tax implications. Carefully consider the capital gains tax (CGT) and stamp duty implications as stipulated by the state government and legislation such as the Duties Act 1997.
• Market research. You will also need to conduct thorough market research of property values and market trends as well as have an understanding of council regulations regarding zoning and subdivision.
• Degree of risk. You need to be comfortable with exercising a degree of risk when entering into a property option agreement as there is the chance that you may not benefit financially.

How can I finance a property option agreement?

Depending on the size and scope of the option development project, you can potentially secure sites with a property investment loan. Compare the home loans below to see if there's one that suits your investment needs.

Start comparing loans for property investment

1 - 20 of 26

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Name	Interest Rate p.a.	Comparison Rate p.a.	Fees	Monthly Payment
Macquarie Bank Offset Home Loan Package Principal & Interest40% min. depositInvestmentOffset account Macquarie Bank Offset Home Loan Package Principal & Interest40% min. depositInvestmentOffset account Details Fees Pros & cons Product Name Macquarie Bank Offset Home Loan Package Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.34% Comp. Rate p.a. 6.59% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $248 p.a. Settlement Fee $350 Discharge Fee $400 Pros 100% offset account Interest only options Cons Annual fee of $248	Interest Rate 6.34%	Comparison Rate 6.59%	Fees Application: $0 Ongoing: $248 p.a.	Monthly Payment $934	Continue Compare
Macquarie Bank Basic Home Loan Principal & Interest40% min. depositInvestment Macquarie Bank Basic Home Loan Principal & Interest40% min. depositInvestment Details Fees Pros & cons Product Name Macquarie Bank Basic Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.34% Comp. Rate p.a. 6.36% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 60% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $400 Pros $0 application and ongoing fees. Interest only options available. Fee free redraws of extra repayments made. Cons No offset account available. $400 discharge fee when you close your home loan.	Interest Rate 6.34%	Comparison Rate 6.36%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $934	Continue Compare
Macquarie Bank Offset Home Loan Package Principal & Interest30% min. depositInvestmentOffset account Macquarie Bank Offset Home Loan Package Principal & Interest30% min. depositInvestmentOffset account Details Fees Pros & cons Product Name Macquarie Bank Offset Home Loan Package Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.34% Comp. Rate p.a. 6.59% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 70% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $248 p.a. Settlement Fee $350 Discharge Fee $400 Pros 100% offset account Interest only options Cons Annual fee of $248	Interest Rate 6.34%	Comparison Rate 6.59%	Fees Application: $0 Ongoing: $248 p.a.	Monthly Payment $934	Continue Compare
Macquarie Bank Basic Fixed Home Loan Principal & Interest 3Y Fixed20% min. depositInvestment Macquarie Bank Basic Fixed Home Loan Principal & Interest 3Y Fixed20% min. depositInvestment Details Fees Pros & cons Product Name Macquarie Bank Basic Fixed Home Loan Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 5.95% Comp. Rate p.a. 6.33% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $400 Pros Borrow with as little as 5% deposit No application fee No valuation fee for properties up to $2 million No annual fee Cons Monthly repayments only	Interest Rate 5.95%	Comparison Rate 6.33%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $896	Continue Compare
Macquarie Bank Basic Home Loan Principal & Interest20% min. depositInvestment Macquarie Bank Basic Home Loan Principal & Interest20% min. depositInvestment Details Fees Pros & cons Product Name Macquarie Bank Basic Home Loan Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.45% Comp. Rate p.a. 6.48% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $350 Discharge Fee $400 Pros $0 application and ongoing fees. Interest only options available. Fee free redraws of extra repayments made. Cons No offset account available. $400 discharge fee when you close your home loan.	Interest Rate 6.45%	Comparison Rate 6.48%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $945	Continue Compare
Macquarie Bank Offset Home Loan Package Principal & Interest20% min. depositInvestmentOffset account Macquarie Bank Offset Home Loan Package Principal & Interest20% min. depositInvestmentOffset account Details Fees Pros & cons Product Name Macquarie Bank Offset Home Loan Package Interest Rate Type variable rate Repayment Type Principal & Interest Interest Rate p.a. 6.45% Comp. Rate p.a. 6.70% Minimum Loan Amount $150,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $248 p.a. Settlement Fee $350 Discharge Fee $400 Pros 100% offset account Interest only options Cons Annual fee of $248	Interest Rate 6.45%	Comparison Rate 6.70%	Fees Application: $0 Ongoing: $248 p.a.	Monthly Payment $945	Continue Compare
Westpac Flexi First Option Home Loan Interest only20% min. depositInvestment Westpac Flexi First Option Home Loan Interest only20% min. depositInvestment Details Fees Pros & cons Product Name Westpac Flexi First Option Home Loan Interest Rate Type Variable rate Repayment Type Interest Only Interest Rate p.a. 7.34% Comp. Rate p.a. 7.66% Minimum Loan Amount $25,000 Maximum Loan Amount $20,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee $150 Discharge Fee $350 Pros Make additional repayments at any time Cons Establishment fee of $600 (currently waived by Westpac). No offset account attached.	Interest Rate 7.34%	Comparison Rate 7.66%	Fees Application: $0 Ongoing: $0 per month	Monthly Payment $1,034	Continue Compare
ANZ Fixed Rate Home Loan Interest only 2Y Fixed10% min. depositInvestment ANZ Fixed Rate Home Loan Interest only 2Y Fixed10% min. depositInvestment Details Fees Pros & cons Product Name ANZ Fixed Rate Home Loan Interest Rate Type Fixed rate Repayment Type Interest Only Interest Rate p.a. 6.49% Comp. Rate p.a. 7.72% Minimum Loan Amount $20,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $10 monthly ($120 p.a.) Settlement Fee $160 Discharge Fee $160 Pros Your interest rate won't change over the course of the fixed term Interest only options available for a period of up to 10 years The ability to split your loan in a fixed portion and a variable portion Full offset available for the 1 year fixed rate product Cons $0 valuation fee $160 settlement fee $10 per month account fee	Interest Rate 6.49%	Comparison Rate 7.72%	Fees Application: $0 Ongoing: $10 per month	Monthly Payment $948	Continue Compare
Aussie Elevate Fixed Home Loan Interest only 3Y Fixed20% min. depositInvestmentOffset account Aussie Elevate Fixed Home Loan Interest only 3Y Fixed20% min. depositInvestmentOffset account Details Fees Pros & cons Product Name Aussie Elevate Fixed Home Loan Interest Rate Type fixed rate Repayment Type Interest Only Interest Rate p.a. 6.64% Comp. Rate p.a. 6.63% Minimum Loan Amount $10,000 Maximum Loan Amount $5,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility Yes Fixed Interest Option Loan Portable Yes Extra Repayments Yes Application Fee $498 Lender's Legal Fee $0 Valuation Fee $300 Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee $0 Discharge Fee $325 Pros Rates for most borrowers 100% offset account Low fees Cons There is a $498 application fee There is a $325 discharge fee	Interest Rate 6.64%	Comparison Rate 6.63%	Fees Application: $498 Ongoing: $0 per month	Monthly Payment $963	Contact Broker Compare
ING Fixed Rate Home Loan Principal & Interest 4Y Fixed5% min. depositInvestment ING Fixed Rate Home Loan Principal & Interest 4Y Fixed5% min. depositInvestment Details Fees Pros & cons Product Name ING Fixed Rate Home Loan Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 5.89% Comp. Rate p.a. 6.17% Minimum Loan Amount $50,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 95% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $499 Lender's Legal Fee $0 Valuation Fee covers up to $225, for the first valuation/property only Ongoing Fees $0 p.a. Settlement Fee $299 Discharge Fee $250 Pros $0 ongoing fees Make additional repayments up to $10,000 per settlement anniversary before incurring fees Cons $499 application fee $250 discharge fee when you close out your home loan No offset account	Interest Rate 5.89%	Comparison Rate 6.17%	Fees Application: $499 Ongoing: $0 p.a.	Monthly Payment $890	Contact Broker Compare
ANZ Fixed Rate Home Loan Principal & Interest 3Y Fixed20% min. depositInvestment ANZ Fixed Rate Home Loan Principal & Interest 3Y Fixed20% min. depositInvestment Details Fees Pros & cons Product Name ANZ Fixed Rate Home Loan Interest Rate Type Fixed rate Repayment Type Principal & Interest Interest Rate p.a. 5.94% Comp. Rate p.a. 7.28% Minimum Loan Amount $20,000 Maximum Loan Amount $10,000,000 Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility No Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $10 monthly ($120 p.a.) Settlement Fee $160 Discharge Fee $160 Pros Your interest rate won't change over the course of the fixed term Interest only options available for a period of up to 10 years The ability to split your loan in a fixed portion and a variable portion Full offset available for the 1 year fixed rate product Cons $0 valuation fee $160 settlement fee $10 per month account fee	Interest Rate 5.94%	Comparison Rate 7.28%	Fees Application: $0 Ongoing: $10 per month	Monthly Payment $895	Continue Compare
Bank of Melbourne Fixed Rate Home Loan with Advantage Package Principal & Interest 2Y Fixed30% min. depositInvestment Bank of Melbourne Fixed Rate Home Loan with Advantage Package Principal & Interest 2Y Fixed30% min. depositInvestment Details Fees Pros & cons Product Name Bank of Melbourne Fixed Rate Home Loan with Advantage Package Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 5.99% Comp. Rate p.a. 7.89% Minimum Loan Amount $150,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 70% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee Various Valuation Fee From $164 Ongoing Fees $395 p.a. Settlement Fee $100 Discharge Fee $350 Pros Competitive fixed rates Allows online redraw Split facility option Cons There is a $395 annual package fee There is a $350 discharge fee There is a $100 settlement fee	Interest Rate 5.99%	Comparison Rate 7.89%	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $900	Contact Broker Compare
ME Flexible Home Loan Fixed with Members Package Principal & Interest 3Y Fixed20% min. depositInvestment ME Flexible Home Loan Fixed with Members Package Principal & Interest 3Y Fixed20% min. depositInvestment Details Fees Pros & cons Product Name ME Flexible Home Loan Fixed with Members Package Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 5.89% Comp. Rate p.a. 6.74% Minimum Loan Amount $40,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable No Extra Repayments Yes Application Fee $0 Lender's Legal Fee $200 Valuation Fee $200 Ongoing Fees $395 p.a. Settlement Fee $250 Discharge Fee $350 Pros Extra repayments up to $30,000 per year are allowed No application fee Cons Annual fee of $395 Discharge fee of $350 Solicitor fee of $200	Interest Rate 5.89%	Comparison Rate 6.74%	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $890	Contact Broker Compare
St.George Fixed Rate Home Loan with Advantage Package Principal & Interest 4Y Fixed20% min. depositInvestment St.George Fixed Rate Home Loan with Advantage Package Principal & Interest 4Y Fixed20% min. depositInvestment Details Fees Pros & cons Product Name St.George Fixed Rate Home Loan with Advantage Package Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 6.19% Comp. Rate p.a. 7.67% Minimum Loan Amount $150,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee Various Valuation Fee From $164 Ongoing Fees $395 p.a. Settlement Fee $100 Discharge Fee $350 Pros $0 application fee Withdraw excess funds from your mortgage via the redraw facility (up to $10,000 a year) Cons There is a settlement fee of $100 There is an annual package fee of $395 There is a $350 discharge fee when you close your home loan account	Interest Rate 6.19%	Comparison Rate 7.67%	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $919	Contact Broker Compare
BankSA Fixed Rate Home Loan with Advantage Package Principal & Interest 4Y Fixed20% min. depositInvestment BankSA Fixed Rate Home Loan with Advantage Package Principal & Interest 4Y Fixed20% min. depositInvestment Details Fees Pros & cons Product Name BankSA Fixed Rate Home Loan with Advantage Package Interest Rate Type fixed rate Repayment Type Principal & Interest Interest Rate p.a. 6.19% Comp. Rate p.a. 7.68% Minimum Loan Amount $150,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option Yes Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee Various Valuation Fee $164 Ongoing Fees $395 p.a. Settlement Fee $100 Discharge Fee $350 Pros $0 application fee Flexible repayments Split loan facility available Cons A $350 discharge fee applies when closing the loan $100 settlement fee $395 annual service fee	Interest Rate 6.19%	Comparison Rate 7.68%	Fees Application: $0 Ongoing: $395 p.a.	Monthly Payment $919	Contact Broker Compare
G&C Mutual Bank Momentum Home Loan Finder Award Interest only20% min. depositInvestmentOffset account G&C Mutual Bank Momentum Home Loan Finder AwardInterest only20% min. depositInvestmentOffset account Details Fees Pros & cons Product Name G&C Mutual Bank Momentum Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.40% Comp. Rate p.a. 6.42% Minimum Loan Amount $100,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee At cost Valuation Fee At cost Ongoing Fees $0 p.a. Settlement Fee At cost Discharge Fee $300 Pros 100% offset account Low fees Cons The lowest rates require up to 50% equity There is a $30 redraw fee	Interest Rate 6.40%	Comparison Rate 6.42%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $940	Continue Compare
Greater Bank Great Rate Home Loan Interest only10% min. depositInvestment Greater Bank Great Rate Home Loan Interest only10% min. depositInvestment Details Fees Pros & cons Product Name Greater Bank Great Rate Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.34% Comp. Rate p.a. 6.35% Minimum Loan Amount $0 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee $0 Valuation Fee $0 Ongoing Fees $0 p.a. Settlement Fee $180 Discharge Fee $300 Pros Redraw facility No application fee No monthly fees Cons Only a partial offset account is available Discharge fee of $300 Settlement fee of $180	Interest Rate 6.34%	Comparison Rate 6.35%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $934	Continue Compare
Hume Bank liteBlue Variable Home Loan Interest only20% min. depositInvestment Hume Bank liteBlue Variable Home Loan Interest only20% min. depositInvestment Details Fees Pros & cons Product Name Hume Bank liteBlue Variable Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.44% Comp. Rate p.a. 6.45% Minimum Loan Amount Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 80% Loan Redraw Facility Yes Offset Account No Split Loan Facility No Fixed Interest Option Loan Portable Extra Repayments Yes Application Fee $199 Lender's Legal Fee Valuation Fee Ongoing Fees $0 monthly ($0 p.a.) Settlement Fee Discharge Fee Pros Variable rate options for large and small deposits No minimum or maximum loan amount No legal or ongoing fees You can make extra repayments Cons $450 application fee Fees for settlement, exit or switching No offset account	Interest Rate 6.44%	Comparison Rate 6.45%	Fees Application: $199 Ongoing: $0 per month	Monthly Payment $944	Contact Broker Compare
G&C Mutual Bank Momentum Home Loan Interest only10% min. depositInvestmentOffset account G&C Mutual Bank Momentum Home Loan Interest only10% min. depositInvestmentOffset account Details Fees Pros & cons Product Name G&C Mutual Bank Momentum Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.50% Comp. Rate p.a. 6.52% Minimum Loan Amount $100,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 90% Loan Redraw Facility Yes Offset Account Yes Split Loan Facility No Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $0 Lender's Legal Fee At cost Valuation Fee At cost Ongoing Fees $0 p.a. Settlement Fee At cost Discharge Fee $300 Pros 100% offset account Low fees Cons The lowest rates require up to 50% equity There is a $30 redraw fee	Interest Rate 6.50%	Comparison Rate 6.52%	Fees Application: $0 Ongoing: $0 p.a.	Monthly Payment $949	Continue Compare
Bank Australia Basic Variable Home Loan Interest only30% min. depositInvestment Bank Australia Basic Variable Home Loan Interest only30% min. depositInvestment Details Fees Pros & cons Product Name Bank Australia Basic Variable Home Loan Interest Rate Type variable rate Repayment Type Interest Only Interest Rate p.a. 6.54% Comp. Rate p.a. 6.47% Minimum Loan Amount $10,000 Maximum Loan Amount N/A Maximum Loan Term 30 years Maximum LVR 70% Loan Redraw Facility Yes Offset Account No Split Loan Facility Yes Fixed Interest Option No Loan Portable Yes Extra Repayments Yes Application Fee $595 for new mortgages & $295 for existing mortgages Lender's Legal Fee $0 Valuation Fee $250 Ongoing Fees $0 p.a. Settlement Fee $0 Discharge Fee $350 Pros No ongoing fee. Redraw facility. Make extra payments. Cons $250 discharge fee when closing your loan accounts. No offset account.	Interest Rate 6.54%	Comparison Rate 6.47%	Fees Application: $595 Ongoing: $0 p.a.	Monthly Payment $953	Contact Broker Compare

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Written by

Richard Whitten

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Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206), a Tier 1 Generic Knowledge certification and a Tier 2 General Advice Deposit Products (RG 146) certification. See full bio

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