First home buyers, as well as investors, or experienced owner-occupiers looking to refinance their existing home loan can apply for this loan.
The absence of upfront fees and no ongoing monthly fees may appeal to home buyers who need to keep their home loan entry and ongoing costs to an absolute minimum.
Coastline allows you to borrow up to 90 per cent of the property’s value and you can split your loan into variable and fixed portions. By having a portion of your loan fixed and the remaining variable, you can protect yourself against rising interest rates. At the same time, you can use the flexibility of this variable portion to help pay off that loan faster as unlimited extra repayments are allowed. A redraw facility is available for those times when you need extra cash but the minimum redraw amount is high at $500.
No offset account is available with this mortgage. So if you do have excess savings in your transaction account, they won’t work to offset the home loan principal and reduce interest costs unless you actually make an extra repayment.
You can get loan terms up to thirty years and you can repay the loan in weekly, fortnightly, or monthly instalments. Interest only repayments are also possible, which will appeal to investors.
However, the variable interest rate charged by Coastline Credit Union sits higher than that on most basic home loans, so you may end up paying more through a higher interest rate, so make sure you do your sums.
This loan would appeal to those borrowers who are wanting to save on start up costs and who want to bank with a local institution. While the loan lacks some features fancier such as an offset account, this may not make much difference to the cost of the home loan as you can still make unlimited repayments to reduce interest costs. But you will need to watch out for the interest rate, which sits higher than many other basic home loan rates available.
If you like a more personalised service, then Coastline are happy to offer it. While the No Fee Home Loan lacks some features like an offset account facility, if you're on a tight budget and don't have much spare cash, then this may not make much difference to the cost of the home loan. You can still make unlimited repayments to reduce interest costs. But you will need to watch out for the higher interest rate on this loan as other basic home loans on the market offer lower rates. Also, if you’re after a wide branch network, Coastline doesn’t have it. Having said that, it does offer telephone and internet banking facilities.
A small community lender offering a fee free loan, the Coastline Credit Union’s No Fee Home Loan may appeal to owner-occupiers or investors.