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The Mutual Premium Loan

Features

The Mutual Premium Home Loan is available with no maximum borrowing amount, as long as you’re not borrowing more than 95 per cent of your property’s value.

While the small deposit requirement can be attractive to first home buyers or investors, you will need to add in the cost of lenders mortgage insurance if your deposit is less than 20 per cent.

Regular principal and interest repayments can be made on a weekly, fortnightly or monthly schedule and you are able to opt for the interest-only repayment option for a specified period, which can be an appealing option if you’re an investor.

The variable interest rates on the Premium Home Loan are moderately high, but there are very low to moderate fixed rates available, though they range up to moderately high for investors.

However, you can also split your loan to take advantage of the benefits from both variable and fixed rates.

The 100 per cent offset account can help to reduce how much you will have to pay in interest over the life of your loan, since the amount you keep in this savings account is offset against your loan balance, only charging interest on the difference. And, to decrease your total loan term, you can make additional repayments to pay off your loan early at any time on the variable rate portion of your loan and up to a certain amount when you have a fixed rate.

The redraw facility provides peace of mind when you make early repayments since you can redraw upon these funds from this facility, although there is a relatively high minimum amount you have to redraw each time.

Insurance discounts are also available with the Premium Home Loan, however an insurance policy will be an additional cost separate from your home loan.

Who is the The Mutual Premium Loan good for?

The Mutual Premium Home Loan could be a good option for first home buyers with a small deposit up to experienced investors or refinancers, since there’s features that suit different borrowing needs and very low fixed rates available.

Although, check the eligibility criteria not only on the loan but also for The Mutual, since you do have to be a member in order to borrow from this lender.

Review - What RateCity says

The Mutual Premium Home Loan could be a great option since it’s fully featured and has very low fixed rates available, without any ongoing fees.

However, this loan would be best suited if weighs up against your needs since the variable rate offered is moderately high, and, despite the lower rates offered for fixed terms, you will revert to this variable rate regardless.

It’s worth taking out the time to determine if the Premium Home Loan will pay off for you in the long run.

The Mutual Premium Loan Options

Read more below about the variable and fixed options on the Premium Home Loan offered through The Mutual.

Fixed Rates from

4.44%

Advertised rate

4.93%

Comparison rate

Variable Rates from

5.08%

Advertised rate

5.12%

Comparison rate
Pros
  • Early repayments allowed.
  • Redraw facility.
  • Interest-only option.
Cons
  • Moderately high variable interest rate.
  • Entry and exit fees.
  • 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
  • Investors
  • Refinancers
Fees
  • Estimated upfront fees: $450 - $650
  • Discharge fees: $200
  • Ongoing fees: $0

The Mutual Premium Loan has a moderately high upfront cost and a moderate fee that you will have to pay when you’re discharged from your loan.

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 is a member-owned bank with branches in Newcastle, though access to an ATM network is provided Australia-wide as well as internet and telephone banking services. Having been in the community for over a century, The Mutual is focused on serving its members through tailored products and services.

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