Borrowers can make additional repayments with no penalty, allowing them to reap interest costs savings. A redraw facility is provided free of charge.
Another key feature is that there are no ongoing fees, a big attraction if you’re on a tight budget.
The minimum loan amount is relatively high, however, at $100,000 and the loan can only be taken for new lending, so existing customers can’t get that deal. But refinancers can apply.
No offset account is available with this mortgage. So if you do have excess savings in your transaction account, they won’t work to offset the home loan principal and help reduce interest costs unless you actually make extra repayments. However, this may not make much difference to the cost of your loan if you don't have any savings to offset your home loan principal.
Who is the Regional Australia Bank Basic Home Loan good for?
This Basic Home Loan may suit owner-occupiers, investors and refinancers. Without any ongoing fees and a relatively low upfront fee, borrowers can save money. Since the loan offers basic features, it may be particularly suitable for first home buyers.
Review - What RateCity says
The CMG Basic Home Loan comes with some advantages, with no ongoing fees and penalty free extra repayments. But if you want an offset account, this loan may not suit you. However, you can still keep interest costs down by making extra repayments. There is limited branch in regional NSW. Although, CMG does offer 24 hours access through their online internet banking services and mobile applications. And if you live in the area, you may benefit from CMU’s local knowledge and working relationships with local real estate agents and solicitors which the credit union says means faster home loan approvals.
Regional Australia Bank Basic Home Loan Options
To find out more about the Basic Home Loan offerings from Community Mutual Group, click on the links below.
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Advertised rate3.87%Intro 36 months
Advertised rate4.47%Intro 36 months