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.


White piggy bank

Who pays what?

The tables below give you a rundown of what the fees are for, how they’re calculated and who’s responsible for paying them. For more detail, also check out our FAQ's.

Borrower Interest rates

Product

Rate p.a.

Squirrel Home Loan

 

Home Loans variable base rate                      

6.45%

Construction Loans variable base rate

6.50%

Launchpad Loan

 

Equity loan                                      

9.95%

Base Loan variable                               

5.09%

1 year                                           

6.54%

2 year                                          

6.44%

3 year                                          

6.98%

Homeowner's loan

 

1 year interest-only                            

7.95%

2 - 3 years                                        

8.95%

5 years                                          

9.95%

Tiny Home Loans

 

2 - 3 years                                     

8.95% - 17.95%

5 - 7 years                                     

9.95% - 18.95%

 

Borrower fees - Personal Loans

Establishment fee

$375 for Tiny House Loans

$150 for Personal Loans, Vehicle Loans, and Debt Consolidation Loans

$0 for Homeowner's Loans

Charged upfront and deducted from the loan 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 Direct Debit payment dishonours. 

Default interest

Accrues at 5% on top of the normal interest rate of the overdue amount for Vehicle Loans, Personal Loans, and Debt Consolidation Loans.

Accrues at 10% on top of the normal interest rate of the overdue amount for Homeowners loans.

Charged to the loan account if the loan is in arrears for more than 5 days.

 

Borrower fees - Home Loans, Construction Loans, Turnkey and Launchpad

 

Establishment fee

Home Loans - $950 for  including Squirrel legal fees

Launchpad - $1,000 including Squirrel legal fees

Up to 2% of loan value where an entity is the borrower including Turnkey loans.

Charged upfront and deducted from the loan in advance.

Progress Payment fee

$100

Payable at loan advance or each payment advance. 

Top-up and term extension fee

$250

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 Direct Debit 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 10% p.a. on top of the normal interest rate of the overdue amount for Home Loans and Construction Loans.

Accrues at 5% on top of the normal interest rate of the overdue amount for Launchpad loans.

Charged to the loan account if the loan is in arrears for more than 5 days.  

 

Investor interest rates (returns)

Product

Rate p.a.

Home loans

Up to 7 years

 

5.50% variable

Construction loans

Up to 2 years

 

6.25% variable

Personal loans

1 year

2-3 years

5-7 years                                     

 

6.00% fixed

6.50% fixed

7.50% fixed

Squirrel Monthly Income Fund   

Target return                                   

 

5.00% variable

 

Investor fees and margins

Service Margin 

Personal Loans 0.95% - 2.95% p.a. of the loan balance deducted from the gross loan repayment.

 

Home Loans and Construction Loans 0.15% - 2.50% p.a. of the loan balance deducted from the gross loan repayment.

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 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: 1.70% 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.