DEF (Defered Entry Fees)

Just a minor point but DEF usually stands for deferred establishment fees, means exactly the same thing i guess but if you come across this terminology in the future don’t be confused.

Hi Bridgebuff. This is one of those things that is a trade off for lower rates. Most do only apply for 1 to 4 years, although a lot of banks have a flat fee (such as ANZ $700) regardless of how long the loan is taken out. While no doubt there are others around if you look, one loan I have written for people that is a fully fetaured loan (like a ‘bank’ standard variable loan – not a basic one) that has absolutely no DEF or DAF (deferred establishment or deferred application, deferred administration – same thing different lingo) and a lower interest rate than their loans is the Wizard Smart Choice loan product. This currently has an interest rate of 7.72%, with a comparison/true rate of 7.77%. If it saves you looking up general info you can find some at http://www.wizard.com.au/homeloans/product.aspx?productid=103&pathwayid=6 . of course, all fixed interest rate loans have very hefty penalties for early payouts. Some of the brokers may also have info on loans without significant DEF’s also. All the best. [strum]