frequently asked questions - home loans
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one direct variable home loan- Q.
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one direct fixed home loan- Q.
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one direct equity home loan- Q.
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General
Q. How much can I borrow?
A. You can borrow up to 90% of the value of your property. You will need to pay a one-off premium for Lenders Mortgage Insurance if your loan amount is more than 80% of the value of your property.
To get a better idea of how much you can borrow, use our How Much Can I Borrow Calculator or call us on
Q. What deposit do I need when taking out a loan?
A. Typically, you need to have at least 10% of the value of the property. The source of your deposit doesn't matter - it could be anything from a gift to a government grant or your savings.
Q. How does the settlement process work with one direct?
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Q. What information do I need? Income Assets Liabilities Expenses
A. The following is a list of information you may need to provide to enable us to assess your home loan application. Although it is unlikely that we will require all of this, we encourage you to make sure it's readily available so we can complete assessment of your application as quickly as possible.
Q. What are your interest rates?
A. One direct offers low rates across all of its home loan options, no matter how much you borrow. Check out our interest rates.
Q. What is a comparison rate?
A. With many lenders, the annual interest rate applicable to your home loan is just part of the cost. A comparison rate not only factors in the annual interest rate (including honeymoon rates) but also all ascertainable ongoing, up-front and other fees. The comparison rate gives you an idea of the costs for a particular loan so you can compare your home loan with others.
Work out the comparison rate of a competitor's home loan by using our Comparison Rate Calculator.
Q. Fixed versus variable - which is best for me?
A. A fixed rate home loan locks in the interest rate for the term that you choose, between one and five years. The loan will then revert to the standard variable rate after the fixed term expires. The variable interest rate is based on many factors and can fluctuate.
Fixed rate home loans provide you with the comfort of knowing how much your repayments will be, regardless of what interest rates do. While variable rate home loans may benefit from interest rate reductions, it's difficult to accurately predict which direction interest rates will move. Fixed home loans are not as flexible as variable rate home loans. For example, fees may apply if you want to break your fixed rate period or discharge your loan early and you may not be able to access extra repayments you make. Many people choose to 'split' their loan to take advantage of both a fixed and variable interest rate. With one direct, you can fix part of your home loan and have the remainder on a variable rate. This gives you a greater certainty of repayments plus the added flexibility of a variable rate home loan.
Borrowers should always consider their needs when deciding which loan type to choose.
Q. What fees do I have to pay (upfront, on-going, early repayment)?
A. There are different types of fees involved when purchasing a home including government fees, legal fees and those charged by the lender. At one direct, we've worked hard to keep our fees to a minimum. You won't pay a Loan Approval Fee, monthly ongoing fees or a redraw fee. Find out more about one direct's fees.
Q. What's the difference between a Principal and Interest home loan and an Interest-Only home loan?
A. Principal and Interest means you make repayments against both the original amount borrowed ('Principal') and the interest that is charged. Interest-Only means that repayments are only paying the interest and no principal. It is important to understand that interest only payments do not reduce the balance or "principal" amount of your loan.
Q. What is redraw?
A. Redraw is a feature, which allows you to withdraw the extra money you've paid into your home loan. That is, the extra money you have paid in addition to your scheduled repayments.
For more information on redraw, you can call us on
You can transfer this money out of your home loan account via Internet Banking and Phone Banking or access your funds via ATM, EFTPOS and BPAY®.
Redraw makes your home loan flexible enough to deal with the unexpected things life throws at you. Better still, there is no restriction on how much you can redraw. So you can credit all of your salary into your loan and use it like a transaction account.
one direct has redraw available on both the one direct variable loan and the one direct equity loan. Redraw is not available on the one direct fixed loan prior to it reverting to the variable rate.
Q. How often can I redraw?
A. You can redraw as often as you like, as long as you have made additional repayments over and above your scheduled repayments. There's no need to take out a personal loan. You can access the extra funds in your home loan at your low one direct rate!
Q. Do any conditions apply to the redraw facility?
A. Yes. The following conditions must be satisfied at the time you wish to make a redraw:
one direct Redraw is not available for the one direct fixed rate loan during the fixed rate period.
Q. How do I apply for the First Home Owner's Grant?
A. One direct will assist you to do this as part of your application process. Alternatively you can apply online at www.firsthome.gov.au or apply in person at any Office of State Revenue.
Q. Can I apply for a one direct home loan face-to-face?
A. With one direct, everything is done over the phone with your Dedicated Lending Specialist or via the Internet, so that we can offer you a low rate. Your Dedicated Lending Specialist will look after you from application to settlement. That is, one person who knows you, and your needs. They are also supported by a great team of professionals who assist in ensuring your loan application goes smoothly.
Q. Will I talk to a different person each time I call?
A. No. When you apply, we will introduce you to one of our Dedicated Lending Specialist. They will handle your home loan from application through to settlement. You'll know their name, direct phone number and email address.
Q. How do I transfer my existing home loan over to one direct?
A. Just call us on
Q. How much does it cost to refinance?
A. When refinancing an existing loan to one direct, your current lender may charge fees for discharge of their mortgage and arranging settlement. One of our Australian based Dedicated Lending Specialists can help you identify some of the costs your existing lender may charge. You should also be able to find these details in your loan agreement.
Transaction costs such as mortgage duty and registration fees will also apply to refinance situations. In some States you may be able to seek a full or partial exemption from paying mortgages duty on refinances. This is at the discretion of the State Revenue Office and they will be able to tell you if you are eligible.
When refinancing, one direct will usually lend up to 80% of the value of the security property Without requiring Lenders Mortgage Insurance (LMI) and up to 90% of the value of the property with LMI.
If your existing borrowings are less than 90% of the property value, you may not have to contribute any funds and any costs incurred can be included in the loan amount.
Q. Does it cost anything if I purchase a new property and want to transfer the mortgage to that property?
A. Yes. There is a fee for changing the security on your loan in addition to the cost of a new property valuation if required. Our normal credit policy will apply.
Q. Can I agree to a term and pay early?
A. Yes. You can choose your loan term up to a maximum of 30 years with a variable rate and you can include a fixed rate term of up to five years. You can also choose your repayment frequency (weekly, fortnightly, monthly) and whether you pay Interest Only or Principal and Interest. You can make additional repayments or pay your loan off in full, however fees may apply.
Q. How are the size of my repayments determined?
A. Your repayments take into account the annual interest rate, the loan term, repayment frequency and loan amount. Use our What Will My Repayments Be Calculator to get an idea of the minimum repayments.
Q. How is interest calculated?
A. Interest is calculated on the daily outstanding balance of your loan. You can reduce the interest payable by making extra repayments or depositing additional funds into your loan account to reduce your balance. You may be able to redraw these funds as and when you need them.
Q. Can I use my one direct equity loan to purchase shares?
A. Yes, you can. In fact you can use the funds to invest, to take a holiday or even to pay for your shopping. It's entirely up to you!
Q. If I take out a one direct equity loan and do not use the entire amount I borrow, do I pay interest or fees on the whole amount?
A. With an equity loan you only pay interest on the outstanding balance. For example, if you borrow $100,000 but you have only drawn $10,000 to purchase shares, the interest is only payable on the outstanding amount, ie $10,000. There are no monthly charges or fees for not using your full credit limit. It is ready though for any expected or unexpected requirements you may have.
Q. What is a repayment holiday?
A. A repayment holiday allows you to suspend your one direct variable or fixed rate loan repayments for up to three months. Approval of a repayment holiday is subject to the following:
Q. What is Lenders Mortgage Insurance?
A. Lenders Mortgage Insurance (LMI) protects the lender in the event of the borrower defaulting on their home loan. If the property is sold and the amount from the sale is not sufficient to repay the loan in full, the LMI insurer will make a payment to the lender to cover the shortfall. The borrower remains liable for any amount owing under the contract even if the LMI insurer has paid the shortfall to the lender.
LMI is different to Mortgage Protection Insurance, which covers the borrowers repayments in the event of unforeseen circumstances for example unemployment, illness or death.
Q. What is a property valuation?
A. A valuation is a professional assessment of how much a property is worth.
Q. How does one direct determine the value or your property?
A. We may use an external valuer or rely on the price stated in the "Contract of Sale" depending on the situation, price of the property, location and how recently the property was purchased. If required, an external valuer will inspect the property, consider all the factors that affect the value and produce a professional property report and valuation for one direct. Please contact us on
one direct variable home loan
Q. Why is it called a 'variable rate' loan?
A. If interest rates change, the interest rate on your loan will change. Interest rates may go up or down. If interest rates go up, your repayments may increase so you can still repay your loan within the agreed term. If interest rates go down, your repayments may go down.
Q. Can I agree to a loan term and then change my mind and repay early?
A. Yes you can. But if you choose to fully repay your loan within the first four years, you will incur a deferred establishment fee. After the first four years, you can repay pay your loan without paying any extra charges.
Q. How else can I use the one direct variable loan?
A. You can credit all of your salary into your loan and use it like a transaction account. You can then withdraw or transfer any money which is additional to your scheduled repayments, as you need it. Find out more about one direct's variable loan.
one direct fixed home loan
Q. Why is it called a fixed rate loan?
A. The interest rate is fixed for a set period of your loan. You can choose how long you would like to fix the rate for up to 10 years. Even if interest rates change, your repayments will stay the same during the fixed rate period of your loan.
Q. Can I make extra repayments?
A. Yes. You can pay up to $10,000 extra per year (based on the anniversary of the start of the fixed interest rate period) without incurring fees.
Q. If I make extra repayments, can I redraw them?
A. No, but once your fixed loan reverts to variable you can redraw any additional repayments that have been made during the variable rate period.
Q. What if I want to pay my loan off early?
A. If you choose to pay your loan off within your fixed rate period, you will need to pay a break cost fee for breaking the fixed rate term. You may also incur a deferred establishment fee if you fully repay your loan within the first four years.
Q. With a one direct Fixed Loan, does the fixed interest rate that was advertised on the day I submitted my loan application apply to my loan?
A. No. The rate that applies to a one direct Fixed Loan is the fixed interest rate as at the settlement date.
Q. What happens if the one direct fixed interest rate changes in between the time in which I submit my application and settlement of my property occurs?
A. The interest rate that will apply to your Fixed Loan will be the fixed interest rate as at the settlement date.
one direct equity home loan
Q. What can I do with my one direct equity loan?
A. You can access the equity in your property for any purpose. Whether you want to invest, take a holiday or pay for your shopping - it's entirely up to you as long as you don't draw over the approved loan limit.
Q. How do I work out how much equity I have?
A. It's easy! Once we approve your loan limit, you can draw up to that amount. So if you have an approved loan limit of $150,000 and have paid off $25,000, you can redraw that $25,000 at any time you like.
Q. How is the interest calculated?
A. Interest is calculated daily on the outstanding balance.
Q. How else can I use the one direct equity loan?
A. You can credit all of your salary into your loan and use it like a transaction account. You can also use your loan for your savings. Any money you deposit in your account reduces your loan balance and the interest you pay.