The Premium Offset Loan comes with a 100 per cent offset account to enable borrowers to reduce how much interest they pay while saving. Any money deposited into the account offsets the amount of interest owed.
Borrowers also have the option of making unlimited extra repayments. Should those funds they’ve repaid be needed elsewhere, they can be redrawn through the attached redraw facility.
When it comes to regular repayments, borrowers can choose to make them weekly, fortnightly or monthly in line with their income cycle.
The Premium Offset Loan may suit a range of borrowers, especially those who are seeking payment flexibility and no ongoing fees. The 100 per cent offset account, redraw facility and uncapped extra repayments are among the features likely to appeal to borrowers.
The Premium Offset Loan from Family First Credit Union gives borrowers the opportunity to pay off their loan quickly by taking advantage of a number of flexible features such as extra repayments and a 100 per cent offset account.
The lack of ongoing fees may a compelling feature of this loan for those who want to concentrate only on the repayments, however the upfront fees are in the high to very high range. It should also be noted the variable rate is very high compared to some of this lender’s counterparts.
As always, borrowers should balance the interest rate and fees against the flexible features to determine whether this loan is right for them.