The Community First Credit Union Fixed Rate Loan offers a range of features including a 100 per cent offset account and the ability to make penalty-free extra repayments to the total amount of $25,000 per year. Borrowers can also access the redraw facility of the loan for a small fee.
The inclusion of the 100 per cent offset account is not particularly common for fixed loans and, when used effectively, can be a great help in reducing the total amount of interest paid on a home loan
The repayment schedule of the loan can be customised to suit the borrower’s needs, meaning repayments can be made on a weekly, fortnightly or monthly basis. The loan also allows the borrower to split the loan amount so that some is charged at a variable interest rate and the rest at the set fixed rate.
The Community First Credit Union Fixed Rate Loan is a relatively low rate loan that may be suitable for borrowers who are refinancing from a variable mortgage. Not only does it offer a relatively low interest rate, it also provides a 100 per cent offset facility which, although common in variable rate loans, is not always found with fixed mortgages. This loan is also specifically for owner occupier borrowers so will not suit those looking to invest in property.