Resi Low Start Home Loan
How the Resi Low Start Home Loan Works
Resi Home Loans offers customers the ability to save money on hefty interest charges for the first year of the mortgage term. This gives borrowers plenty of ways to get ahead on mortgage payments, or help to free up cash flow for other things for an entire year.
When the introductory interest rate expires, the rate reverts to a highly competitive rate that is even lower than the standard variable rate advertised by the big banks. This allows borrowers to continue the savings for the rest of the loan term.
Featured Resi Home Loan
The Smart Option Home Loan offers you a super low rate fixed for 1 year, Plus no ongoing, no application fee.
- Interest Rate of 6.49%
- Comparison Rate of 6.99%
- Application Fee of $0
- Maximum LVR With LMI: 95%
- Minimum Borrowing: $50,000
- Maximum Borrowing: $20,000,000
Rates and Fees
The current interest rates and fees for the Resi Low Start Home Loan are as follows:
| Fee Type | Rate/Amount |
| Introductory Interest Rate | 6.35 for 12 months% |
| Standard Variable Rate | 6.35 for 12 months% |
| Application Fee | $550 |
| Monthly account fee | $0 |
Repayment Flexibility
Resi will happily allow customers to take advantage of flexible repayment options. Payments can be made via direct debit from any Australian transaction account weekly, fortnightly or monthly.
Customers are also encouraged to make extra repayments into their home loan account at any time without penalty. Any excess payments made into the account can be redrawn if required using the redraw facility.
Rapid Home Loan Reduction
During the first year of the home loan term, customers can benefit by receiving an interest rate reduction of 1.1% off the regular rate. This allows them to save money on interest charges, but it gives borrowers the ideal way to get ahead on their home loan.
Here’s how it works:
Assume a customer has a mortgage of $250,000. The Resi Low Rate Introductory interest rate is just 6.35 for 12 months% Throughout that first year, the customer will receive documents that say the minimum payment due into the home loan account each month is just $1,586.75.
However, if you consider that the rest of the loan term will be charged at the standard variable rate of 7.55%, this will show a repayment amount of $1,756.60. This is an increase of $170.05 per month after the introductory rate expires.
Of course, some customers may choose to keep that $170.05 per month saving to put towards other bills.
However, smart borrowers know that working out the full payment amount they will have to pay, and then paying this amount for the first year could save them more money in the long run.
Example 1:
The first example shows paying only the minimum payments due for the first year:
| Payment | Payment Made | Interest Rate | Opening Balance | Closing Balance |
| 1 | $1,586.75 | 6.54% | $250,000 | $249,775.75 |
| 6 | $1,586.75 | 6.54% | $248,866.45 | $248,636.02 |
| 12 | $1,586.75 | 6.54% | $247,464.89 | $247,226.83 |
By the end of that first year, this customer would have paid off around $2,700 off the amount borrowed. Their repayments would then change to reflect the higher standard rate being charged once the introductory rate ends.
Example 2:
This second example shows the difference if the borrower makes the regular payments that would be due if the standard variable rate was being charged.
| Payment | Payment Made | Interest Rate | Opening Balance | Closing Balance |
| 1 | $1,756.60 | 6.54% | $250,000 | $249,605.70 |
| 6 | $1,756.60 | 6.54% | $248,006.88 | $247,604.72 |
| 12 | $1,756.60 | 6.54% | $245,542.53 | $245,123.93 |
By the end of the first year, this customer would have paid off nearly $5,000 off the amount borrowed. This borrower also wouldn’t have to worry about changing the budget, as the repayment amounts would remain the same, even though the interest rate would change.
Taking advantage of the introductory 12 month rate is a great way to speed up mortgage reduction plans and save money at the same time.
Related posts:
- Resi Smart Pro Home Loan
- Resi Smart Option Home Loan
- Resi Flexi Fix Home Loan
- Resi Complete Home Loan
- Resi Switch & Save Mortgage Refinance
- Resi Smart Pro Lite Home Loan
- Bank of Queensland First-Start Home Loan
- Resi BreakThru Home Loan
- Resi Line of Credit Equity Home Loan
- Resi Flexi Options Home Loan
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded Mortgage of the Year 2012 – this multi-award winner features 100% offset and a loyalty 0.25% rate drop after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
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