Hunter United Interest Only Loan

Features

Hunter United’s Interest Only Loan is offered to investors as well as owner-occupiers, although investors will require a higher deposit.  The organisation also offers a tiered fee rebate so the more banking you do with them, the higher your rebate on fees (this is capped). This rebate applies no matter which version of the loan you have.

Hunter United Interest Only Loan – variable:

The variable rate loan comes with a competitively low interest rate. You have the flexibility to make your repayments weekly, fortnightly or monthly and you can take out the loan for up to five years. You also have the flexibility to make additional repayments at any time.

While there is no offset facility available, you are entitled to one free redraw per month, after which fees apply. You also have access to a Hunter United credit card with this loan and discounts are available with this credit card facility.

Another attractive feature of the loan is the option to take a ‘repayment holiday’ if you need to do so, but be aware that this may incur additional costs.

Hunter United Interest Only Loan – fixed:

The fixed rate version of this loan is only available for three years and does not offer you the option to redraw additional funds.

While you are allowed to make additional repayments into your loan, you will incur a break fee if you pay in more than 3 per cent of your total loan amount in a 12-month period.

The fixed rate interest-only loan also has fees attached to varying your loan, and switching between the variable and fixed rate loans.

Who is the Hunter United Interest Only Loan good for?

The Interest Only Loan is good if you’re looking for a low interest rate and require most of your income to go towards other things in the first few years of owning your property. As the loan only requires you to pay back interest and not principle plus interest, you can reallocate any spare income to other things. This can be useful if you run a business or any other type of investment. For investors in particular, the loan may prove attractive as there is no ‘investor loading’ on the offered interest rate.

Review - What RateCity says

Hunter United’s Interest Only Loan comes with a competitive interest rate and no ongoing fees, making it a viable option if you’re looking to get started with your first home. As you will only be paying the interest on the loan, your initial repayments will be lower than many other loan options.

It is a good idea however, to make sure you have a plan in place for what you will do when the interest-only period ends – and be aware that changing your loan structure at this point may incur additional fees and charges from the credit union.

Hunter United Interest Only Loan Options

The Interest Only Loan from Hunter United is offered at different term lengths.

Pros
  • Ability to make extra repayments without penalty.
  • No ongoing fees.
  • Competitive interest rate with no additional interest charged to investors.
Cons
  • No offset facility.
  • Medium to high application fee.
  • No redraw facility on fixed rate loan.
Eligibility

Minimum borrowing amount is $100,000.

Must be a member of the Hunter United credit union.

Must meet serviceability criteria.

About Hunter United

Hunter United Credit Union is a regional lender, operating in the Hunter region of New South Wales. While there are only a few branches, the lender does offer mobile lending, customer support by phone (including over the weekends), and online banking services.

As far as ATMs are concerned, Hunter United customers are entitled to use Westpac and St George ATMs for free.

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