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The Mutual Package Loan

Features

The Package Home Loan from The Mutual is offered to owner-occupiers and investors who meet at least the minimum borrowing amount, however, as long as you’re not borrowing more than 90 per cent of your property’s value, there is no maximum amount you can borrow. If you make less than a 20 per cent deposit, make sure you know what you will have to pay in lenders mortgage insurance. The Package Home Loan offers competitive interest rates with very low variable rates and very low to moderate fixed rates for shorter to longer fixed terms for both owner-occupied and investment properties.

The loan split option means you don’t have to choose between a variable or fixed rate, but can split your loan into separate variable and fixed portions. Though, at the end of your fixed term, your rate will revert to a variable interest rate. You can also choose the interest-only option where you will only have to make repayments towards your interest for a specified term set by The Mutual, which is an added feature well-suited for investors. The 100 per cent offset account gives you the ability to directly reduce the interest you owe on your loan through maintaining the balance in your offset account. And, making extra repayments towards your loan can also reduce the interest you must pay by directly decreasing your loan term. Though, if you need to access funds from your early repayments, the redraw facility will provide you with the ability to redraw on them.

The package benefits the Package Home Loan offers are credit card discounts, fee-free transactions with a The Mutual savings account and discounts on general insurance.

Who is the The Mutual Package Loan good for?

The Package Home Loan will suit borrowers – from owner-occupiers and investors who are purchasing a new home or refinancing – who meet the minimum borrowing amount and eligibility criteria to become a member of The Mutual. However, it’s best suited for people who have already determined that they want all of the included features and products and who think access to these are worth the annual fee.

Review - What RateCity says

The Mutual Package Home Loan can be a versatile home loan package option offering security and flexibility if you are looking for a slightly larger loan size. Although, it’s worth thinking about if you really need the extra financial products offered with any package deal, since, as with the Package Home Loan, there is a hefty annual fee you have to pay for access to these products. However, the low interest rates and availability of features could make this a great option for you if you’ve already determined that the features and extras are what you’re looking for in a home loan and if you’ve decided you want to bank with and be a member of The Mutual.

The Mutual Package Loan Options

The Mutual Package Home Loan offers fixed, variable and split interest rate options for a range of borrowing needs, with more information about these options provided at the corresponding links.

Product
Advertised rate
Comparison rate*
Monthly repayment
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Fixed Rates from

3.99%

Advertised rate

4.54%

Comparison rate

Variable Rates from

3.68%

Advertised rate

4.53%

Comparison rate
Pros
  • 100 per cent offset account.
  • Loan split option.
  • Extra repayments and redraws allowed.
Cons
  • Entry and exit fees.
  • Ongoing annual package fee.
  • Limited branch access.
Eligibility

Must be a member of The Mutual.

Must be a citizen or permanent resident of Australia.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $150 - $450
  • Discharge fees: $200
  • Ongoing fees: $395 annually

There is a small upfront cost in establishment fees for the Package Home Loan as well as a moderate discharge fee you will have to pay when you finish paying off your loan. And, as with most packaged loans, you will have to pay an annual fee every year over your entire loan term, which adds up to quite a substantial cost that only increases with longer loan terms. It’s worth pointing out that the packaged products, including the credit card, savings account and offered insurance, have separate added costs and fees that should be calculated into what the total cost of this loan will be to you should you choose these options.

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

The Mutual provides a range of financial services to its members and strives to put their needs first, having been a part of the Maitland community for over a century. Members can access their accounts online and over the phone, though branch access is limited to the Newcastle area.

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