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.
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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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Advertised rate3.99%Fixed - 3 years
Advertised rate3.84%Fixed - 2 years
Advertised rate4.58%Fixed - 4 years
Advertised rate4.71%Fixed - 5 years
Advertised rate4.60%Fixed - 3 years
Advertised rate4.43%Fixed - 2 years
Advertised rate4.88%Fixed - 4 years
Advertised rate3.79%Fixed - 1 year
Advertised rate5.01%Fixed - 5 years
Advertised rate4.34%Fixed - 1 year
Advertised rate4.83%Fixed - 2 years
Advertised rate5.00%Fixed - 3 years
Advertised rate4.74%Fixed - 1 year
Advertised rate5.28%Fixed - 4 years
Advertised rate5.41%Fixed - 5 years