Australian Unity Home Loans Health, Wealth and Happiness Package

Features

Australian Unity’s Health Wealth and Happiness Package offers borrowers both fixed and variable rate home loans. Both loans are available to owner-occupiers with a deposit of 10 per cent or more.

Variable loan

One of the most impressive features of this loan is the heavily discounted interest rate. You may be eligible for a discount of up to 0.74 per cent off the standard variable interest rate which would give you one of the best rates around.

You need to open a fee-free Australian Unity transaction or 100 per cent offset account from which to make your loan repayments in order to access this rate discount.

Borrowers can make unlimited free redraws and you can also make extra repayments on this loan whenever you like. However, the minimum redraw amount is a rather high $500.

You can borrow up to 90 per cent of the property's value with lenders mortgage insurance or up to 80% without such insurance.

You may also be eligible for a discount on an Australian Unity health insurance policy as well as a small credit toward a home and contents policy.

Fixed loan

The fixed rate version of this loan comes with some of all the same features as the variable loan – except that the discounted interest rate is far lower. If you choose to fix your interest rate, you are entitled to a 0.1 per cent discount off the standard fixed interest rate. Again, you will need to open an Australian Unity transaction or offset in order to be eligible for this discount.

You can lock in a fixed rate – but beware of the fee. For $699, you can hold on to an advertised fixed interest rate at the time of your application for a period of up to 90 days.

Who is the Australian Unity Health, Wealth and Happiness package good for?

This package could be good for first home buyers and those looking to refinance existing loans who want a loan with a moderately low interest rate. Moreover, you can keep all of your banking in one place. It may also suit those who want to deal with a real person in the way of your own personal banker, which the package offers. The loan is not available to investors.

Review - What RateCity says

The Australian Unity Health, Wealth and Happiness package is a good offering, especially for first home buyers. The 100 per cent offset facility can save you thousands in interest costs over the term of your loan and help you pay it off sooner without penalty. The package offers competitive rates. You also get a free transaction account and free credit card and redraw facility, as well as a decent discount on health insurance.

The upfront establishment fee is high so be aware of this. In addition, unless you have 20 per cent or more deposit (or the equivalent in equity) you may have to pay lenders mortgage insurance, which is pretty standard. But make sure you factor this cost into your calculations.

Additional discounts on insurance products can also save you money – but be sure to work out carefully whether you really need these and whether or not you can do better with other insurers. It always pays to shop around.

Australian Unity Home Loans Health, Wealth and Happiness Package Options

Australian Unity’s Health, Wealth & Happiness Loan options include both variable and fixed interest rate loans. You can select to fix your rate for one, three, or five years.

Pros
  • Low variable interest rate.
  • Free 100 per cent offset and redraw facility included.
  • Free credit card and transaction account.
Cons
  • High upfront establishment fee.
  • Not available to investors.
  • Must open an Australian Unity transaction or offset account to access rate discounts.
Eligibility

Must have 10 per cent or more as deposit or available equity.

Must open an Australian Unity transaction or offset account.

Must be an owner-occupier.

About Australian Unity

Australian Unity is a national healthcare, financial services and retirement living organisation providing services to more than half a million Australians. While it does not operate a branch network, it has mobile lenders and funds can be accessed from one of over 3000 Redibank ATMs for no additional fee.

As an Australian Unity customer you will have your own personal banker to help with your banking needs. The organisation doesn’t operate an overseas call centre and it aims to deliver specialised and personal experience.

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