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Hume Bank Interest Saver Loan

Features

The Interest Saver Loan from Hume Bank comes with a moderately low variable interest rate for owner-occupied properties and a moderately high rate for investment properties.

Although, the loan split option could help reduce your interest payments by having a portion of your loan split with a fixed rate.

And, the interest-only option could help alleviate the strain of making repayments towards both your interest and principal amount, which is allowed for a period of time specified by Hume Bank.

If you have extra funds at any time during your loan term, you can make as many additional repayments towards your loan at no extra cost – which could save you money on interest by reducing the total number of years on your loan depending on how many early repayments you make.

To provide extra flexibility, you can access these funds again if you need to through the offered redraw facility. Or, if you need to borrow more, there is an option to top up your loan.

While there is no 100 per cent offset account to further reduce the interest you must pay on your loan, you do have the option to open a fee-free Hume Bank transaction account.

This loan can be used for the construction of an owner-occupied or investment property, but if you’re purchasing or refinancing, make sure you meet the minimum borrowing amount in order to qualify for the Interest Saver Loan.

Who is the Hume Bank Interest Saver Loan good for?

The Interest Saver Loan is available for new home and investment property purchases, refinancing and construction and offers features that could suit borrowers looking to have this loan for any of these purposes.

Since no 100 per cent offset account is offered and there is no maximum on how many early repayments you can make, the Interest Saver Loan could be most suitable for stringent savers who could put forth extra funds in order to take years off their loan.

Review - What RateCity says

If you’re looking for a simple variable interest loan that gives you the opportunity to make additional repayments without penalty while being able to redraw these additional funds if needed, then the Interest Saver Loan could be a good choice for you.

The interest rate is competitive and you can even save through the offered interest-only period or through splitting your loan.

It’s worth considering how you like to bank, though. If you live outside the areas where branches are location and you’re happy using the online banking portal, Hume Bank could be a suitable lender. Conversely, if you prefer face-to-face over the counter interaction, then the limited regional branch locations may prove to be a huge downside.

Hume Bank Interest Saver Loan Options

Find out more about the Hume Bank Interest Saver Home Loan options available to you through clicking the corresponding links.

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Variable Rates from

3.89%

Advertised rate

4.39%

Comparison rate
Pros
  • Moderately low variable interest rates available.
  • No ongoing fees.
  • Early repayments and redraws allowed.
Cons
  • Moderately high upfront cost.
  • No 100 per cent offset account.
  • Discharge fee.
Eligibility

Must be able to provide proof of income.

Must be over 18 years of age.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $0 - $750
  • Discharge fees: $200
  • Ongoing fees: $0

The upfront fees for the Interest Saver Loan are moderately high, which is inclusive of application and establishment fees. And, a moderate discharge fee will be due whenever you complete your loan term and have paid off the balance in full.

Topping up your loan and manual use of the redraw facility will cost you a fee for doing either, however you can make redraws for free online.

If you are refinancing your loan to Hume Bank from another lender, up to a certain amount worth of fees will be waived by Hume Bank.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Hume Bank

Hume Bank is a regional customer-owned bank based in south eastern NSW and north eastern Victoria. Hume Bank customers can access Westpac’s ATM network across the country and access the telephone customer service line or handle their accounts online.

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