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Victoria Teachers Mutual Bank Education Package Loan

Features

One of the main features of the Education Package Home Loan from Victoria Teachers Mutual Bank is the very low variable interest rates for owner-occupied properties and the moderately low to moderate rates for investors, for smaller to larger borrowing amounts. These rates are discounted off of the standard variable rate offered by Victoria Teachers Mutual Bank and you can also choose between very low and moderate fixed interest rates if you’d like to have a fixed term with your Education Package Home Loan.

The 100 per cent offset account offered with this loan could help you to save on interest through depositing funds into multiple offset savings accounts, the balances of which are deducted against your home loan balance with interest only charged on this difference. You can make additional repayments towards your loan so you can work towards repaying your loan early, which could save you years of having to make interest repayments.

The redraw facility is a bonus so you can access those extra funds that have been paid onto your loan over the years should you need them. The repayment holiday and family repayment pause options allow you to take a break from repayments if you need to due to a change in employment or if you go on maternity or paternity leave. The package benefits offered on the Education Package Home Loan include a discount on the switching fee if you switch from another Victoria Teachers Mutual Bank home loan to this package, a waiver on the establishment fee for a personal loan with this lender, competitive prices on CGU insurance policies and an annual-fee waived Visa credit card.

To qualify for this loan, you must meet the serviceability criteria and have at least a 15 per cent deposit and be able to pay the cost of lenders mortgage insurance if you do make less than a 20 per cent deposit. Though, with the Education Package Home Loan, you might be able to avoid this insurance if you meet certain conditions.

Who is the Victoria Teachers Mutual Bank Education Package Loan good for?

The Education Package Home Loan is available for new home or investment property purchases, refinancing and construction. This packaged home loan would best suit borrowers who have already decided to bank with this lender since most of the benefits are on financial products and services offered through Victoria Teachers Mutual Bank at a pretty sizeable annual fee.

Review - What RateCity says

It’s a good idea with any package home loan to check the separate costs and fees charged on the individual products and services that are offered alongside your home loan and to see if these are benefits that you actually want to take advantage of, since, as with the Education Package Home Loan, you will have to pay a large fee each year of your loan term for access to these. Besides the discounts and benefits this package offers, the features of this home loan could make this a great option should it meet all of your criteria, especially with the very low fixed and variable rates that are available.

Victoria Teachers Mutual Bank Education Package Loan Options

See the available options for the Victoria Teachers Mutual Bank Education Package Home Loan below.

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Fixed Rates from

3.74%

Advertised rate

4.06%

Comparison rate

Variable Rates from

3.79%

Advertised rate

4.10%

Comparison rate
Pros
  • Very low variable and fixed rates available.
  • 100 per cent offset account.
  • Repayment holiday and family repayment pause options.
Cons
  • Entry and exit fees.
  • Ongoing annual fee.
  • Limited branch access.
Eligibility

Must be a citizen or permanent resident of Australia.

Must be able to provide proof of income.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $0 - $300
  • Discharge fees: $350
  • Ongoing fees: $350 annually

Victoria Teachers Mutual Bank discounts the establishment fee on this loan, though you will still have to pay a moderate fee as well as a moderate discharge fee when you complete your loan. As with most packaged home loans, there is a sizeable package fee that is due annually, which can add up to a substantial cost since the term of this home loan goes up to 30 years.

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

As a customer-owned bank, Victoria Teachers Mutual Bank has been servicing the Victorian educational sector for many years through offering a range of products inclusive of financial planning advice and information on insurance and superannuation. With an ATM network across Australia, access to funds is convenient.

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