The main attractive feature of the Offset Home Loan from Summerland Credit Union is the attached 100 per cent offset account. This account works like a savings account; you deposit funds and offset the balance of your home loan with the balance of your offset account and interest is only charged on the difference. While the offset account is a great feature, the very low variable interest rate available for larger deposit sizes could be even more attractive.
Conversely though, if you have a smaller deposit size and loan amount under a certain threshold, you have to pay a moderate interest rate. But if you’re diligent about using the offset account, you could save loads on your interest repayments by supplementing the feature early repayments. If you’re concerned about putting extra cash towards your loan, the redraw facility provides peace of mind since you can redraw the funds from your additional repayments.
For added security, loan repayment insurance is available as an add-on to cover you in the event something affects your ability to pay.
Who is the Summerland Credit Union Offset Loan good for?
The Offset Loan from Summerland Credit Union is offered to borrowers looking to purchase a home or investment property and for refinancers. The included features would best suit borrowers looking to save up funds to put towards extra repayments and into the offset facility to in turn reduce the life of their loan and total amount that must be repaid. Since this lender is a customer-owned credit union, you must be a member in order to be eligible for any products offered through Summerland Credit Union. As such, the Offset Home Loan would be best suited if you already are a member or are interested in becoming one.
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The Offset Home Loan from Summerland Credit Union gives you the ability to repay your loan early and to reduce the total amount you must pay on your loan through its offset account. If you’re eligible for the very low variable interest rate, this loan could be a great cost-effective option. While there is a moderate rate for smaller deposit sizes, you can reduce the interest you have to pay if you’re good at maintaining the available 100 per cent offset account.
A factor to consider is the limited number of regional branches where you can get in-person service from Summerland Credit Union. However, the suitability of this lender and this loan depends on your priorities and needs, so it’s worth your time to go through your options and see if this loan checks everything off your wish list.
Summerland Credit Union Offset Loan Options
Find out more about the Summerland Credit Union Offset Home Loan options available for different borrowing amounts below.
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