ECU Australia’s Fixed Rate Home Loan offers competitive interest rates on one, two, three or five years terms. Borrowers can make weekly, fortnightly or monthly repayments, with more regular payments enabling you to keep interest costs down.
If you are looking to reduce your loan amount, ECU allows extra repayments to a maximum amount per year. This can be a valuable tool to help you reduce interest costs on your mortgage. You can make redraws on extra payments too, though there is a minimum amount you have to be redrawing.
ECU offers versatility as you can split your home loan into fixed and variable portions and combine the stability of a fixed rate of interest with the flexibility of a variable rate loan, which allows unlimited extra repayments.
After the high upfront fee, there are no ongoing fees with this loan. Interest only repayments are also possible, which may attract investors. At the end of the fixed term, the interest rate converts to the standard variable rate.
You can borrow up to 95 per cent of the value of the property. But you’ll need lenders mortgage insurance if you borrow more than 80 per cent, though this is standard practice among lenders.
Who is the ECU Australia Fixed Rate Loan good for?
Whether you are budget conscious owner-occupier or an astute investor looking for portfolio growth, ECU fixed loans also offer some flexibility with interest only repayments possible, as well as some extra repayments.
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Credit unions can be the answer for those home buyers looking for a smaller community approach. ECU offers a competitive fixed home loan product with attractive interest rates, no ongoing fees and flexibility in that extra repayments and redraws are allowed. However, a downside to this loan is the high upfront fees, which can erode other benefits. Also, ECU has a limited branch network compared to banks, but it does provide online and telephone banking facilities 24/7. If you’re after a longer fixed loan, however, the five-year maximum on ECU fixed loans may not meet your needs. You’ll need to do a full assessment of the pros and cons on this loan to assess its suitability.
ECU Australia Fixed Rate Loan Options
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Advertised rate4.39%Fixed - 3 years
Advertised rate4.29%Fixed - 2 years
Advertised rate4.29%Fixed - 1 year