Mortgage Repayment Options
Your Home Loan budget is based on what you can afford to repay today. But in the future things could improve as your career progresses or your circumstances change.
Flexible Repayment Options
When you opt for a First Active Mortgage, you can avail of a range of our flexible repayment options:
Monthly Step-Up Payment(s):
You have the option to increase your Monthly Mortgage Repayment, for a selected period of time, or until you give us further notice. The amount of any Step-Up Payment(s) can subsequently be withdrawn from your mortgage account on request. By increasing your regular Monthly Mortgage Repayment you will reduce the balance on which interest is calculated and charged. This will have the effect of paying off your mortgage earlier.
Additional Payment(s)
An Additional Payment is any individual payment paid over and above your Monthly Mortgage Repayment. All Additional Payments will be credited to your loan account.
Making an additional payment will save you interest on your mortgage. The amount of any Additional Payment(s) can subsequently be withdrawn from your mortgage account on request.
Payment Holidays
You have the option to take a payment holiday/break from repaying your mortgage. The duration of the payment holiday and how it will work for you will depend on the draw down date of your mortgage. For details, please ask your Loan Advisor. For details, please ask your Loan Advisor.
Lump Sum Payment(s)
A Lump Sum Payment means any individual payment paid over and above the Monthly Mortgage Repayment. This payment will pay off part of the mortgage balance outstanding and therefore is not available to be subsequently withdrawn from the mortgage account. When a Lump Sum Payment(s) is used to pay off part of your mortgage balance, you may opt to:
- Have your Monthly Mortgage Repayments reduced to repay the loan over the remaining term.
- Formally reduce the term of the loan (annuity loans only), thereby maintaining Monthly Mortgage Repayments at their current level. Interest is recalculated on the loan account from the date the Lump Sum Payment is received. You may choose not to capitalise your payment and in this case your payment is treated as an Additional Payment(s)
Lump sum repayment option is available for variable rate mortgages only. For more information on Repayment Options ask your Loan Advisor for details. To avail of any of the above Repayment Options, you must complete the appropriate Repayment Options Application form, available from your local First Active.
Interest Only Repayment:
With this option, you only pay the interest on your mortgage for a chosen term (depending on type of mortgage). After the interest only period your loan then reverts to a capital and interest repayment schedule for the remaining term of the loan.