Home or investment loans
If you choose a variable rate home or investment loan, the interest rate can rise or fall depending upon the market and economic conditions. This can potentially impact your repayment amount. On a variable rate, you have the flexibility to make unlimited extra repayments without a fee applying, to pay down your loan sooner.
Choosing a fixed rate home or investment loan means you can lock your interest in at a set rate for one to five years. So if you think interest rates have hit rock bottom or that rates may rise, you can add certainty to your loan by fixing your repayments for a set period.
If you're still not sure about which option is right for you, we're happy to help you make the right decision. Call us on 13 11 82 or visit your nearest branch for more details.
Interest Only loans provide you with the option of making a repayment equal to the interest charge monthly. By selecting this product option and only paying the interest, you will not reduce the principal balance of your loan during your Interest Only period.
If you have registered for Digital Banking at People First Bank, you can set up a scheduled transfer to make recurring payments on your loan.
Online Banking
Click on 'Transfer' under the 'Pay & transfer' tab, then click on the 'Schedule payment' and follow the prompts.
People First Bank App
Select ‘Payments’ on the bottom menu, then click ‘Pay & transfer’ and follow the prompts.
Don't have Online Banking? Learn how to register on our Digital Banking page.
If transferring your payment from another financial institution, use the BSB 671 000, your loan account number and your surname for the account name.
Interest rates on existing home or investment loans, when increasing, are published as a public notice in The Australian newspaper on the day of the change. For a decrease, we are not required to provide notice, as it’s in your favour.
Regarding changes in your repayments, we’ll notify via the following methods:
- If you make Principal and Interest repayments, you’ll receive a letter from us (email or post) with your new repayment information (including confirmation of your rate), providing you with at least 30 days notice for you to make any changes.
- If you make Interest Only repayments, for decreases, you’ll receive notification with your next statement. For increases, you’ll receive a letter from us (email or post) with the new details for your loan.
- If you have a Line of Credit account, you’ll receive a notification of the rate change with your next statement.
At People First Bank we understand that credit is a very important facility which allows you to achieve your personal, financial or lifestyle goals faster than you could if you had to rely on your savings alone.
As a mutually owned financial institution we embrace our responsibility to understand your personal situation when we make recommendations regarding providing, extending or arranging credit for you. This is to ensure you are reasonably likely to meet the obligations you have in respect of repaying the debt and avoid experiencing financial stress.
But we recognise that situations may change from time to time which may inhibit your ability to meet your credit repayment obligations. We understand the pressures that you and your family may experience during these difficult times and we work with you to find a mutually acceptable solution to aid in your overall debt management strategies and to continue to work with you to achieve your financial goals.
Lenders Mortgage Insurance
Fixed Rate Home Loans
Construction loans
The only option for a construction loan is within our Basic Variable product.
The construction period of your loan will be interest only and the loan will revert to principal and interest repayments. For Investment you have the option of selecting whether you will have a further interest only period at the end of your construction period.
If you’ve chosen a registered builder, you may be asked to provide:
- A signed copy of the Industry Standard Fixed Price Contract
- A copy of building plans and council permits
- A copy of the builder’s licence
- The builder’s bank account details
- Copies of insurance policies, including Builders All Risk/Public Liability Insurance, Domestic/Home Warranty Insurance, and Public Liability Insurance
The standard stages of construction are:
1. Preparation – plans, permits, fees, insurance, etc.
2. Foundation – levelling the land, laying the slab, excavations, plumbing, etc.
3. Framing – constructing walls, roof trusses, windows, door frames, etc.
4. Lock-up – adding everything you need to turn your building into a house and locking it up.
5. Fix-up – plastering, sealing, adding your appliances, bathroom installed, etc.
6. Completion – site tidied, fences up, and builders receive final payment.
Yes. If you are buying land without a building contract, you can apply for a regular home loan. Then when you’re ready to build, reach out to us and we can help. If you are buying a house and land package, you can get a construction loan. The first drawdown would be for the purchase of the land, and progressive drawdowns would cover the building stages.
If you have enough equity in your property to cover the demolition costs and the new build, you may be able to borrow the funds. Otherwise, you will need to use your own savings to cover the cost of demolition before the construction can commence.
No. If you want to borrow money for more than just the build (for curtains, blinds, furniture, appliances and so on), you may need a separate loan. Talk to us about your options.
Make sure to get home insurance before the final payment stage. We’ll need to confirm the house is insured before making the final payment to your builder. To show this is complete, send in a copy of your home insurance certificate with your final drawdown request.
Yes. People First Bank are a Housing Australia authorised Participating Lender and a construction loan is one of the options customers can consider as part of this Australian Government initiative.
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