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Teachers Mutual Bank Classic Home Loan

Features

This is a simple home loan option that gives you the ability to pay your loan off sooner through additional repayments, with the added flexibility of being able to re-access these funds through the redraw facility for free.

It’s worth noting that this product offers the benefit of taking a repayment pause, which makes allowances for those times when critical circumstances interfere with normal daily life. The burden of repaying the loan can be waived for an agreed period during a repayment pause for situations such as pregnancy or redundancy.

The Teachers Mutual Classic Home Loan is available from a minimum borrowing amount of $150,000 up to $1 million, although you can only borrow up to 85 per cent of your property’s value which means you must make at least a 15 per cent deposit. Also note that any deposit amount less than 20 per cent means you will have to pay lender’s insurance.

Be aware that Teachers Mutual Bank does have strict eligibility criteria as you must work in the Australian educational sector or be a family member or partner of an existing Teachers Mutual Bank member in order to become a member and be eligible for this home loan.

Who is the Teachers Mutual Bank Classic Home Loan good for?

If you are an owner-occupier or a refinancer looking for a better deal, or perhaps someone wanting a break from the big four banks, then the Teachers Mutual Bank Classic Home Loan may suit you.

Review - What RateCity says

This education provider-focused loan incorporates a competitive low variable interest rate with a few added benefits to help you pay off your home loan early if you are able to manage your funds well.

If you meet the eligibility criteria for this loan, including the minimum borrowing amount, it could be a great basic loan option for you.

As with any major purchase, it’s always a good idea to make a checklist of your needs and to even seek personal financial advice from a specialist before choosing a home loan.

Teachers Mutual Bank Classic Home Loan Options

Click the link below for more information about the Teachers Mutual Bank Classic Home Loan.

Product
Advertised rate
Comparison rate*
Monthly repayment
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Details
Details

Variable Rates from

3.99%

Advertised rate

4.15%

Comparison rate
Pros
  • Very low variable interest rate.
  • $0 in ongoing fees.
  • Early repayments and redraws available fee-free.
Cons
  • Moderately high upfront cost.
  • No 100 per cent offset account.
  • Strict eligibility criteria.
Eligibility

Must be an Australian citizen or permanent resident.

Must be over 18 years of age.

Must work in the Australian education sector or be a family member or partner of a Teachers Mutual Bank Member.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
Fees
  • Estimated upfront fees: $750 - $805
  • Discharge fees: $200 - $75
  • Ongoing fees: $0 - $8 monthly

A main feature of this loan is that there are no ongoing fees, however the entry fee for this loan is moderately high and includes your establishment, valuation and third party fees. You can also expect a discharge fee that is payable when you reach the end of your loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About Teachers Mutual Bank

Teachers Mutual Bank has been helping borrowers reach their goals since 1966 with a strong member-focus and a range of financial products for the eligible borrowers.

You must work in the Australian education sector to be a member, or be a family member or partner of a member. All members have access to face-to-face service as well as 24-hour access to internet, mobile and phone banking.

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