Interest rates and fees
There are some fees associated with our peer-to-peer lending. Whilst we can’t take away fees completely, we can promise that our lending fees are fair, considered and competitive.
There’s nothing vague or hidden with Squirrel and we won’t sting you down the line.
You can even repay your loan early, at no additional cost.
Below you'll find all of our borrower fees and investor fees.
Borrower interest rates
| Product | Rate description | Rate p.a. |
|---|---|---|
| Housing Variable Rate | Variable base rate | 6.45% |
| Business Variable Rate | Variable base rate | 7.25% |
| Launchpad Loan | ||
| Equity loan | 9.95% | |
| Base Loan variable | 8.50% | |
| Homeowner's Loan | ||
| 1 year interest-only | 9.75% | |
| 2-3 years | 9.85% | |
| 5 years | 9.95% |
Borrower fees - Personal Loans
| Fee | Fee description | Notes |
|---|---|---|
| Establishment fee | $0 for Homeowner's Loans | Charged up front and deducted from the loan in advance. |
| Progress payment fee | $100 per progress payment | Payable at each payment advance. Not applicable to Homeowner's Loans. |
| Default fee | $25 per month | Charged to the loan account if the loan is in arrears (5-day grace period). |
| Dishonour fee | $10 per transaction | Charged to the loan account if a payment dishonours. |
| Default interest | Accrues at 5% on top of the normal interest rate of the overdue amount for Homeowners Loans, Tiny House Loans, Vehicle Loans, Personal Loans, and Debt Consolidation Loans. | Charged to the loan account if the loan is in arrears. |
Borrower fees – Home Loans, Construction Loans, Turnkey and Launchpad
| Fee | Fee description | Notes |
|---|---|---|
| Establishment fee | Home Loans – $950 including Squirrel legal fees Launchpad – $950 including Squirrel legal fees Up to 3% of loan value where an entity is the borrower including Turnkey loans |
Charged upfront and deducted from the loan in advance. |
| Progress payment fees | Home loans – $100 Construction loans – $100 per payment or $500 at settlement |
Payable at loan advance or each payment advance. |
| Top-up and term extension fee | Home Loans – $250 Construction Loans – Up to 3% of loan value |
Payable if loan documents need to be amended. |
| Line of credit fee | Up to 1.3% | Charged on the approved loan limit, calculated daily, charged monthly. |
| Default fee | $25 per month | Charged to the loan account if the loan is in arrears (5-day grace period). |
| Dishonour fee | $10 per transaction | Charged to the loan account if a payment dishonours. |
| Discharge fee | $500 including Squirrel legal fees | Charged to the loan account upon discharging our security interest where property has been used as security for a loan. |
| Default interest | Accrues at 5% p.a. on top of the normal interest rate of the overdue amount for Home Loans, Construction Loans, and Launchpad Loans. | Charged to the loan account if the loan is in arrears. |
| Redocumentation fee | $250 for Launchpad Loans | |
| Non-settlement fee | $250 for Launchpad Loans |
Investor interest rates (returns)
| Product | Rate description | Rate p.a. |
|---|---|---|
| Home Loans | ||
| Up to 7 years | 5.75% variable | |
| Construction Loans | ||
| Up to 2 years | 6.25% variable | |
| Personal Loans | ||
| 1 year | 7.75% fixed | |
| 2-3 years | 7.75% fixed | |
| 5-7 years | 7.75% fixed | |
| Squirrel Monthly Income Fund | ||
| Target return | 1 year New Term Deposit Rate (>$10k) + 2.00% | |
| On-Call Account | 3.00% |
Investor fees & margins
| Fee / Margin | Fee / Margin description | Notes |
|---|---|---|
| Service margin | Personal Loans 1.45%-5.95%p.a. of the loan balance deducted from the gross loan repayment. Home Loans and Construction Loans 0.70%-2.75%p.a. of the loan balance deducted from the gross loan repayment. On-Call Accounts up to 0.25%p.a. being the difference between the interest rate we receive from the bank(s) where your On-Call Account money is held and the interest rate you earn on your On-Call Account balance. |
Charged to the investor by deducting from the Borrower's repayments. The applicable service margin is dependent on the risk grade of the Borrower – lower risk loans carry a lower service margin. The Prevailing Interest Rate published on our website for each Investment Class or On-Call Account is the rate net of the Service Margin and Reserve Levy (if any). |
| Reserve Levy | 0.10%-3.25% of the loan balance deducted from the gross loan payment. | The Reserve Levy for each loan is dictated by the assessed credit risk of the borrower. Reserve Levies are held on Trust for the benefit of Investors. The Reserve Levy is charged against the gross investor return. The Prevailing Interest Rate for each investment class is the rate net of the Service Margin and Reserve Levy. |
| Annual fund charges | Peer to peer term investments: no annual fund charges Squirrel Monthly Income Fund: 2.00%p.a. incl. GST Squirrel Wholesale Home Loan Fund: 0.25%p.a. incl. GST Squirrel Wholesale Construction Loan Fund: 0.25%p.a. incl. GST |
Squirrel Monthly Income Fund, Wholesale Home Loan Fund, and Wholesale Construction Loan Fund annual fund charges are deducted monthly from distributions. |