40-Year Extended
Home Loan
- Investors
- First home buyers
- Next home buyers
- Construction
- Refinancers
Extend your property reach with a 40-year home loan
Up to 40-year home loan term gives you longer to repay your loan and can reduce your monthly repayments by spreading them over more than a standard 30-year term.
Your ability to meet ongoing repayments is assessed over a longer period of up to 35 years (above the standard 30), helping your current income go further.
Repayments can be reduced when spread over a longer term, or you can access added flexibility available through pre-approved interest only repayment options.
Empowering more Australians to buy the properties they deserve
Up to 95% Loan-to-Value Ratio (LVR) lending, inclusive of risk fees.
Full 40-year term available up to age 45, reducing incrementally to age 50 (no investor restrictions).
PAYG, self-employed and Company & Trust income, (where you tick our lending policy boxes.)
With features that put borrowers in control
Who can benefit from the 40-Year Extended Home Loan?
- First home buyers buying or building a property as a first or long-term home.
- Existing homeowners refinancing for lower repayments or lifestyle priorities.
- Upgraders moving to a larger home.
- Investors who want to buy a new property with a smaller deposit.
- Investors looking for more cash-flow flexibility on a new or existing loan.
- Investors interested in benefitting from newbuild property opportunities.
- Investors wanting to reduce repayment pressure without taking on more debt.
Important: 40-year home loan trade-offs
40-year home loan comes with important trade-offs.
Higher interest costs
When you borrow and repay over a longer term, more interest will be paid over the life of the loan.
Slower equity growth
Your equity will grow slower, particularly in the early years, because repayments towards your loan principal will be less.
Interest only repayments
During an interest only repayment term your loan balance will not reduce, and your repayments increase when the term ends.
Refinancing and restructuring
With less 40-year loans available the home loan market, there will be less refinancing choice to another 40-year loan term.
Key Features
- Available for purchase, refinance or construction
- Interest rate: Variable only (no fixed rates)
- Loan amounts from $150,000 to $3.5 million. Maximum loan limits vary by property location and lending criteria.
- Up to 95% LVR (Inclusive of any risk fees, namely our Lenders Protection Fee or Construction Risk Fee.)
- Offset facility available
- Redraw available
- Unlimited extra repayments
- Visa Debit card: Available to Australian residents. For eligible residential construction loans, a Visa Debit card is available after the construction period ends. During construction, a Visa Debit card is only available where an offset facility is linked to the loan.
- Interest only repayment options: Maximum of 5 years for owner occupiers, or 10 years for investors.
- Property: Residential only (not commercial)
While the 40-Year Extended Home Loan is designed to reduce minimum monthly repayments, you can make unlimited extra repayments whenever they choose. By paying more than the required repayment amount, you can pay off you loan sooner and reduce the total interest payable over the life of the loan.
Important: Any extra repayments made are voluntary and you should ensure the loan remains suitable for your circumstances and financial objectives. Scheduled repayments are not automatic recalculated when extra repayments are made.
Fees
| Loan application/Loan settlement fee | Nil |
| Lender's annual facility fee | $379.00 |
| Lenders Protection Fee | For loans above 80% LVR |
| Construction Risk Fee | For all construction loans |
| Discharge administration fee | $595.00 (is waived if loan reaches full term as per the loan agreement) |
| Loan account variation fee2 | $150 |
| Loan facility variation fee3 | $450 |
| Third party cost1 | At cost |
| Valuation fee4 | Waived for all residential applications |
- Third party fees are quoted exclusive of GST and will have GST added. Third party costs reasonably incurred in providing this service may include legal, custodian, mortgage management, land registry and electronic processing fees. These costs may vary and are payable by the applicant(s). Fees shown assume a standard application (one loan contract and one security property). Additional fees may apply for more complex arrangements (e.g. company or trustee borrowers, guarantors, variations or postponements).
- A Loan account variation fee may apply when changes are made to a loan account or its features (such as repayment frequency, loan structure, or linked accounts). Any applicable fees will be disclosed before the change is processed.
- A Loan facility variation fee may apply if a request change to a loan alters its structure, terms, or risk profile. This can include changes such as increasing the loan amount, extending loan term, adding or removing borrowers, or substituting the security property. These types of changes may require a reassessment of the loan. Any applicable fees will be disclosed before the variation is processed.
- The residential valuation waiver applies only to applications that have been approved and settled. If an application is cancelled, withdrawn, or no active application is received, any applicable cancellation and valuation fees will be payable by the borrower and, in some cases, the broker.
Disclaimer
- As with any property purchase, investment or refinance decision, a 40-year home loan involves important trade-offs and risks. It’s important for borrowers to seek independent financial, legal and tax advice and thoroughly evaluate any proposals presented to them. The information provided is accurate as of the issue date and is subject to change without notice. Product features, fees, eligibility criteria and lending policies may change without notice. All applications are subject to credit assessment, verification requirements, lending criteria and approval. Terms and conditions apply.
- Visa Debit card available for Australian residents after the construction period, or during the construction period if an offset facility is linked to the Visa Debit card.
- Standard refinances from a 30-year home loan are generally permitted, subject to lending criteria and credit assessment. Certain refinance types may not be eligible. Refinancing existing loans arranged initially or managed by ColCap Financial Group, Origin MMS or one of its managers or partners is prohibited for the 40-Year Extended Home Loan product.