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Summerland Credit Union Equity Extra Overdraft

Features

The Equity Extra Overdraft is a flexible credit facility. A line of credit functions in a similar way to a credit card. You have a pre-approved borrowing limit and can draw on as little or as much of that sum as you need, with interest paid on the outstanding balance.

Under this facility, the overdraft is accessed via a savings account linked to your mortgage. You can withdraw funds at any time and use the money for any purpose. How much you repay is up to you; there are no structured repayments and you’re only charged interest on the amount of money drawn on the credit facility.

The Summerland Credit Union offers customers a competitive variable interest rate on the line of credit and owner occupiers, as well as investors, can apply.

One of the main benefits of the Equity Extra Overdraft is that you can borrow funds when you need to without filling out any paperwork. You can, for example, fund renovations on your home or buy a new car without having to take out a personal loan. Depending on how much equity you have in your home, you could potentially use the Equity Extra Overdraft as a deposit to buy another property.

The variable rate for a line of credit will almost always be much less than that charged on personal loan products. Summerland Credit Union promises fast loan approval and speedy document preparation.

Who is the Summerland Credit Union Equity Extra Overdraft good for?

The Equity Extra Overdraft may suit home buyers, investors, owner-occupiers and refinancers who want access to a flexible credit facility. If you think at some stage you’ll need extra funds on top of your mortgage, this product may suit you as you don’t need to go through an additional loan application process to get the money.

Review - What RateCity says

If you own equity in your home and need to access additional funds, the Equity Extra Overdraft could be the solution. You can draw on up to an agreed amount and only get charged interest on the amount of credit that you use. But the facility comes at a high initial and ongoing cost and you also need to be a disciplined borrower to make sure you repay the borrowed amount. Otherwise, your interest costs may accumulate to a prohibitive level.

Summerland Credit Union Equity Extra Overdraft Options

The Equity Extra Overdraft lets you take advantage of the equity in your home via a line of credit. Repayments are unstructured and you only pay interest on the money you use.

Variable Rates from

4.37%

Advertised rate

4.55%

Comparison rate
Pros
  • Access funds any time you need.
  • Draw on funds to make investments or purchases.
  • Unstructured repayments.
Cons
  • High upfront fees.
  • High monthly fees.
  • Limited borrowing amount.
Eligibility

Owner occupiers and investors can apply.

Suitable For
  • First Home Buyers
  • Investors
  • Owner-Occupiers
  • Refinancers
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $800
  • Discharge fees: $250
  • Ongoing fees: $10 monthly

The Summerland Credit Union charges high upfront fees to establish the Equity Extra Overdraft. Borrowers also pay high monthly fees. It’s also worth remembering that you pay interest costs on a daily basis on the amount you actually use. The danger is that you never pay it off and interest costs accumulate since loan repayments aren’t required.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About Summerland Credit Union

Summerland Credit Union is a customer-owned institution. It channels its profits back into its products and services, claiming it has fairer fees good service. Summerland Credit Union aims to provide its members with tailored financial solutions.

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