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Summerland Credit Union Offset Loan

Features

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.

Review - What RateCity says

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.

Variable Rates from

4.04%

Advertised rate

4.20%

Comparison rate
Pros
  • Very low variable interest rate.
  • 100 per cent offset account.
  • Lump sum and early repayments allowed.
Cons
  • Moderate variable rate for smaller deposit amounts.
  • High upfront costs.
  • Discharge and ongoing monthly fees.
Eligibility

Must be a Summerland Credit Union member.

Must be an Australian citizen or permanent resident.

Must be able to provide proof of income.

Suitable For
  • First Home Buyers
  • Investors
  • Owner-Occupiers
  • Refinancers
Fees
  • Estimated upfront fees: $800
  • Discharge fees: $250
  • Ongoing fees: $8 monthly

The biggest drawback of the Offset Home Loan is the amount of fees you have to pay. The entry and exit fees you have to pay includes a high upfront cost and a moderate discharge fee. You also have to pay a small monthly ongoing fee throughout the life of your loan, which means this small cost adds up to be quite a large cost over a number of years.

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

Summerland Credit Union is a community-focused credit union that is completely owned by its customers. There are a few branches throughout NSW and access to an ATM network Australia-wide. Customers can also bank through the offered internet banking service.

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