bcu Discount Variable Rate Loan

Features

The bcu Discount Variable Rate Loan combines a variable interest rate with a range of flexible features.

This variable loan gives you the option of a 40-year loan term which can be appealing to first home buyers looking for lower repayment amounts.

This loan also gives you the option of saving interest by taking advantage of the 100 percent offset account. While the redraw facility is fee-free, there is a minimum withdrawal amount and no redraws can be made if you’re paying interest-only.

The bcu Discount Variable Rate Loan lets you choose between weekly, monthly and fortnightly repayment options and there is no fee for extra repayments.

While this loan is variable, you can split the loan into both fixed and variable interest rates to give yourself a little more certainty over your repayment amounts.

Another noteworthy convenience is the portability of the loan, which means that your home loan moves when you do and there’s no need to reapply.

bcu will lend up to 95 percent of the purchase price, however it may be subject to approval and Lenders’ Mortgage Insurance. 

Who is the bcu Discount Variable Rate Loan good for?

The varied features of the bcu Discount Variable Rate Loan make it appealing to a wide range of borrowers.

The 40-year loan term is appealing to first home buyers and owner occupiers while the interest only and 100 percent offset facility is appealing to investors.

Borrowers looking for the best of both worlds may benefit from the split loan feature.

Review - What RateCity says

While bcu does not have some of the bells and whistles of the big banks, does boast some unusual and nice features. The 40-year loan term is a drawcard for first home buyers looking for lower repayments, the caveat being that over time, you’re paying more in interest. Having said that, as you build up a bigger nest egg, this loan does allow you to make unlimited additional repayments which could end up reducing the loan term.

The ability to transfer your loan over when you move is a nice feature for those looking for their next move. The portability also helps offset the high upfront fee.

Borrowers looking for face-to-face support might be put off by the limited branch network of stores spread between Port Macquarie and Queensland.

bcu Discount Variable Rate Loan Options

bcu offers a variety of fixed and variable home loans to suit a variety of borrowers, including line of credit options. 

Pros
  • 100 percent offset account.
  • No fee for extra repayments.
  • 40-year loan term.
Cons
  • High upfront fees.
  • Limited branch network.
  • Minimum redraw amount.
Eligibility

Must be able to provide proof of income.

Must provide details of assets and liabilities.

Must provide 100 points of identification.

About Bananacoast Community Credit Union

bcu was founded by a small group of business owners in the 1970s. Determined to shake the limitations of traditional finance and driven by the notion of a ‘fair go’, this group of savvy financiers pooled their resources and built a bank.

Compare your product with the big 4 banks, or add more products to compare
As seen on