Modern day mortgages have a seemingly endless array for features designed to help you manage your loan and pay it off faster than the standard 30 year term.

Most Australians have very little understanding of how these features work and which ones would be helpful for them.

Our mortgage brokers will help you to choose the right loan features and consequently a loan product as part of their Preliminary Assessment.

This page is designed to help you to understand what these features mean and how they can help you.


Loan redraw gives you the power to withdrawal any additional repayments to which were made on top of the minimum loan repayment. e

For example, if you had been making an additional repayment of $200 on a monthly basis, then after a year you will be able to redraw $2,400. Effectively any additional payments you have made can be accessed when you need them.

This is a great way to keep funds on standby or to save for a holiday or car in your loan account rather than in your savings account.

However, please be advised that some lenders may charge a fee for a loan redraw and in the case of fixed rate loans, redraw is often not available.

Extra repayments

With this feature you have the ability to make extra repayments into your loan on top of their minimum loan repayment. E.g. If your minimum monthly loan repayment is $2,000, but instead of paying the minimum figure you pay $3,000 per month into your loan. This means that they have made an extra repayment of $1,000 into the loan.

Extra repayments can be made on a regular basis by changing the amount that the banks direct debit from your account. Alternatively you can make extra repayments on an irregular basis by transferring money in whenever you have it available.

Please note that for fixed rate loans, extra repayments is often not available.

Professional package discounts

A professional package is where you pay one annual fee in return for discounts on a range of products and services from your lender. In most cases you can receive the following benefits:

  • Waived application fee.
  • Waived monthly fee on your loan.
  • Waived valuation fee.
  • Interest rate discounts (0.5% to 0.9% depending on the lender, loan size & the market).
  • Waived monthly fee for your cheque account.
  • Waived annual fee for a credit card with rewards.
  • Discounted insurance products.
  • Special service / higher level of service from the bank.

In most cases, a professional package is suitable for large loans (>$250,000) and is almost always used when we negotiate a special discount for customers borrowing over $1,000,000. They can also be suitable for people who have multiple products with the one bank.

Interest only

With an interest only period you will just pay the interest due each month, and not any of the principal itself. The benefit of doing this is that you keep your repayments to an absolute minimum, however you will not pay off the loan unless you make extra repayments. Interest only periods are usually for up to 5 years, however some lenders will consider 10 years or even 15 years!

Salary crediting

This feature allows you to have your salary paid directly into your loan account. This is most commonly used for people with Line of Credit loans or who are salary sacrificing their home loan.

Loan portability

With loan portability you can move your loan onto another property. Normally this is used when you sell your home and buy a new home. In most cases for this to work the settlements must occur on the same day. This can avoid the need to apply for a new home loan when you move house.

Repayment holiday

A repayment holiday can be used if your circumstances change. Normally this is due to the arrival of a new baby, and consequently a reduction in income for your family due to taking time off for maternity leave. Typically you can reduce or avoid making repayments for up to six months, during which time the interest adds onto your loan.

When you return to work you can then restart your repayments and eventually increase your repayments to catch up to where you were before.

Loan splitting

This feature allows your loan to have multiple loan accounts. The most common use of this is for people to setup a loan as half fixed, half variable. This allows them to make extra repayments on the variable portion, however to partially protect themselves from rising interest rates.

You can also use multiple loan accounts to keep track of loans used for different purposes. For example if you buy shares and use your home as security. You can have a separate account for this purpose so that you can show the tax office which part of your loan is tax deductible.

100% offset account

We have covered this in more detail on our 100% offset account page.

Line of Credit (LOC)

We have covered this in more detail on our Line of Credit page.

Find out more

Our mortgage brokers are here to help you make the right choices with your home loan. If you aren’t sure which loan features you need, or need more information about other loan features not listed here then please contact us and we’ll help you to decide.

  • Tyson

    Do you have a calculator that I can use to work out my mortgage term and the amount I can save if I make additional repayments?

  • Hey Tyson,

    Yes, you can use the extra repayments calculator to do that. Using the calculator is very simple – you’ll only have to work out how much you can afford to repay each month, enter the details of your loan into the calculator and then enter the difference between the normal repayments and the amount you can afford to repay into the extra repayment section. Here’s the link to the calculator:

  • weaver

    How much salary packaged income can the lenders accept?

  • Most banks assess the gross income only without taking any salary sacrifice tax benefits into consideration. However, our best lender for salary packaging can assess part of your income as “tax free” and can accept 100% of your packaged income as long as it’s consistent and can be verified by an employment letter.

  • Leandra

    I’m thinking of getting a fixed rate loan with St George. Can you tell me how much I may be allowed to make in extra repayments before I get penalised?

  • Hey Leandra,

    St George may allow you to make up to $10,000 in extra repayments in one year before they charge you any fees. Please contact your lender to be sure of this though.

  • Frederick

    I am also considering to go for a fixed rate home loan. I like the idea of being able to make a bit of extra repayments so a flexi rate or something is also on my mind. I just want to get an idea of how much I can expect to pay in break fees should I have to break the fixed contract for any reason. Can you help?

  • We understand that banks don’t always disclose their break fees or how they will be calculated. For this reason we’ve created this easy to follow guide for anyone considering a fixed rate loan. Please check out and have a crack at our break costs calculator. This should help you get the estimates you want. Here’s the link to it:

  • Hick

    My partner was talking about splitting our home loan because we like the idea of making any extra repayments on the variable portion of the mortgage while having the other portion fixed. We’re not sure how much we can split though. Can you give an idea of this?

  • Hi Hick,
    Well there is no concrete rule to how much you can split, which means that you can split your mortgage by any amount you want. For instance, you can split the loan down the middle or 50/50, or you can split it 20% variable and 80% fixed. Keep in mind that splitting a mortgage means you distribute interest rate movements, as well as the risks involved with each feature. It’s essential that you seek advice from a professional financial planner before you decide to choose a split mortgage.