Family First Credit Union charges a very competitive interest rate on this loan, which has some useful features which can allow borrowers to reduce interest costs on their home loan.
The loan comes with a free 100 per cent offset account, which is a great way for borrowers to cut interest costs as they can link their mortgage to a transaction account. The balance in the transaction account is then used to offset the home loan balance, which can reduce interest costs payable significantly.
Borrowers can make home loan repayments on a weekly, fortnightly, or monthly basis, with more frequent payments helping to reduce interest costs. Extra repayments are allowed on the loan and lump sum payments can be made without a financial penalty. Borrowers can also redraw extra repayments, though fees apply.
The minimum loan amount is a flexible $20,000 and borrowers can access up to 95 per cent of the property’s value with lenders mortgage insurance or 80 per cent without.
With a competitive variable rate and no ongoing payments, this loan may suit investors looking to get the best deal possible out of the property market. With a 100 per cent offset account and lump sum payments welcome, borrowers can make savings on interest costs with flexible repayment options and use of the offset account.
A standard variable rate home loan of this type could suit an investor or owner occupier who can make additional payments on top of their regular repayments. The provision of the offset account can help borrowers to significantly reduce interest costs and lead to big savings over a prolonged period. Those looking to build or renovate a property however would be wise to stay clear of the redraw facility and its attached fees. First time home buyers and those refinancing may be put off by the hefty upfront fees, which sit above those charged on most other home loans.
Borrowers can borrow up to 80 per cent of the property’s value with the Standard Variable Loan or 95 per cent if you have lenders mortgage insurance. The loan can be paid off over a period of up to 30 years with regular payments made weekly, fortnightly or monthly.