Interest on your Viridian Line of Credit is calculated daily on your outstanding loan balance and charged monthly.
This amount will be debited from your Viridian Line of Credit on the first calendar day of the following month and is capitalised and compounded (added to your loan and becomes part of your outstanding loan balance).
It’s important to note that unless you make regular payments, you will reach your approved limit sooner and have less money to access.
Debt Reduction Plan
It’s important to have a clear debt reduction plan or exit strategy prepared so that your VLOC is paid off in full prior to your retirement, or plan how you’ll manage its ongoing servicing after retirement. We recommend you seek independent legal and/or financial advice to understand your obligations, risks and impact on your financial situation.
Alternatively, you can also switch your Viridian Line of Credit to a standard home loan product which can offer regular Principal and Interest repayments and/or the security of a fixed rate.
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1 The Residential Equity Rate and Investment Residential Equity Rate are variable rates that generally move in line with market conditions and can change at any time.
# Total home lending balance is the sum of the account balance of home lending accounts and the credit limit of Viridian Line of Credit accounts that you have with us at the time you apply for Wealth Package. An annual fee and eligibility criteria apply to Wealth Package and terms and conditions are available on application.
Applications for finance are subject to the Bank’s normal credit approval. Full terms and conditions are included in the Loan Offer. Other fees and charges are payable.