How do flexible home loans work?

• Flexible home loans are a home loan and everyday account in one.
• You have an agreed loan limit, and you can borrow up to that limit anytime without having to apply – so it’s like a line of credit or an overdraft.
• Interest is calculated daily so you can reduce the overall amount of interest you pay by keeping your balance as low as possible.  For example, by direct crediting your salary to your flexible home loan account, and by buying everyday purchases with a Thoroughbred Card and paying it off once a month.
• You can redraw up to your loan limit for any reason – for example, if you want to buy a new car or appliance – the interest rate is generally lower than other forms of borrowing such as hire purchase.
• There is one monthly fee for all account and transaction fees for your everyday transactions.

Benefits of flexible home loans

• You can make lump sum repayments or pay off your entire loan anytime, at no additional cost.
• You may be able to reduce the overall amount of interest you pay on your home loan.
• You have the flexibility to borrow up to your loan limit at any time without having to apply, for any purpose you like.

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The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms, conditions and fees apply to all loans. Contact us for more details.

For borrowing over 80% of a property’s value, a Low Equity Premium on a graduated scale will apply. A copy of the Bank’s Disclosure Statement is available from any National Bank branch.