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Teachers Mutual Bank Fixed Option Loan

Features

The Teachers Fixed Option Home Loan offers you a low interest rate during the fixed period.

The 100 per cent offset account option can help to reduce the interest that you have to repay on your loan through the balance of a linked transaction account.

You cannot make early repayments during your fixed term, but you will be able to do so once you revert to a variable interest rate in order to help pay your loan off early.

There is no redraw facility however, so ensure that you won’t need the funds later on from any additional repayments you may make.

For those who want to hedge their bets between fixed and variable rates, there is the option to split your Teachers Fixed Option Home Loan with a variable rate loan.

If you move homes during your loan term, you can take your Teachers Fixed Option Home Loan with you since there is a loan portability option.

While the fixed term rates offered by Teachers Mutual are competitive, keep in mind that any fixed loan will revert to the Teachers Flexi Choice variable rate, which is relatively high.

Who is the Teachers Mutual Bank Teachers Fixed Option Loan good for?

The Teachers Fixed Option Loan from Teachers Mutual Bank is suitable for a number of buyers should you meet the eligibility criteria.

The interest-only repayment option makes it an attractive loan for investors while the low fixed interest rates will be attractive to people looking to manage a tight budget that doesn’t want to worry about variable rate changes.

Review - What RateCity says

This is a viable option for owner-occupiers and investors looking for a relatively low interest rate that is fixed for one to five years. There are some upfront fees attached to this loan that may deter some home owners, plus it is important to consider the revert rate when your fixed period finishes to make sure you can afford the higher repayments.

One major hurdle with this loan is the eligibility criteria as you need to work in the Australian education sector, or be a relative of someone who is.

Teachers Mutual Bank Fixed Option Loan Options

More information about the Teachers Fixed Option Loan options for owner-occupiers and investors are provided at the links below.

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Fixed Rates from

3.79%

Advertised rate

5.04%

Comparison rate
Pros
  • Low fixed rates available.
  • 100 per cent offset account available.
  • Interest-only repayment option.
Cons
  • High comparison rate for longer fixed terms.
  • Moderately high upfront fee.
  • Reverts to a high variable interest rate following the fixed term.
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
  • Investors
Fees
  • Estimated upfront fees: $750
  • Discharge fees: $75
  • Ongoing fees: $0

If you decide to take out the Teachers Fixed Option Home Loan, you’ll be hit with a moderately high upfront fee, which includes your valuation, administration and establishment fees.

A discharge fee is also payable at the end of your loan term and you will be charged fees for topping up your loan.

Although there are no monthly and annual fees, these other mentioned fees can add up to be quite costly.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Teachers Mutual Bank

Being a member-owned credit union focused on Australian education, Teachers Mutual Bank offers a range of financial products and services tailored to educators. There are only a handful service centres in the country, but members do have banking access via internet, mobile and phone 24/7.

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