The SCU Fixed Interest Loan is ideal if you’re looking for a fixed interest rate to take advantage of having set repayments for a period of up to five years.
While very low fixed rates are available, they do range up to being moderately high depending on the fixed term you choose and if you’re an owner-occupier or investor.
Though, the split loan feature gives you the ability to split your loan between a fixed and variable interest rate. You can also choose to repay your loan in weekly, fortnightly or monthly installments.
And, if you’re looking to reduce the length of your loan, and therefore the total amount you pay in interest, you can make up to a certain amount allowed by SCU in additional repayments per year during your fixed term and can access these funds through the redraw facility if need be.
However, this option is not further complemented by a 100 per cent offset account.
Loan repayment insurance is offered on the Fixed Interest Loan to cover for you if you can no longer make your repayments, though there are separate conditions and costs for this insurance option.
There is only a small deposit requirement for this loan, which can be as equally attractive to investors as it is to first home buyers. However, if your loan is over 80 percent of your property’s value, meaning your deposit is less than 20 per cent, you will have to pay lenders mortgage insurance and there is a minimum borrowing amount that you have to meet to take out this loan.
Who is the SCU Fixed Interest Loan good for?
This loan is ideal for borrowers looking for a low maintenance home loan that gives them the certainty of fixed repayment amounts. Refinancers might not benefit as much as the upfront fee is quite high, though this loan is available to both owner-occupiers and investors.
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While this SCU Fixed Interest Loan is available to owner-occupiers and investors, the lack of interest-only repayments and offset account is something to take note of.
That aside, this loan does have some flexibility, which can be appealing no matter your borrowing needs.
However, it comes down to exactly what you’re looking for in a loan and your own specific needs in order to determine if this loan meets your criteria and is your most cost-effective option.
SCU Fixed Interest Loan Options
The SCU Fixed Interest Loan is ideal for owner-occupiers and investors looking to lock in a fixed interest rate and take advantage of set repayments for a period of up to five years. Click the corresponding links an option that suits you.
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Advertised rate3.69%Fixed - 3 years
Advertised rate4.00%Fixed - 2 years
Advertised rate4.74%Fixed - 5 years
Advertised rate4.54%Fixed - 1 year