The First Home Buyer’s loan gives borrowers a rate discount for the first three years of the loan, then goes back to the standard variable rate. It’s worth keeping in mind that the variable rate is higher than many others in the market.
Borrowers can opt for weekly, fortnightly, or monthly repayments, which allows them to match their repayments to their salary cycle.
There is also the option to top up or increase the loan amount, as well as a redraw facility that lets borrowers draw back some of their past payments. Additional repayments are similarly allowed and the loan comes with a 100 per cent offset account.
Macquarie Credit Union will lodge borrowers’ first home owners grant if they are approved.
It may work for those who are looking for a loan with some flexibility in the future, as it allows borrowers to apply for extra credit, or redraw should they need extra funds. It also allows borrowers to make additional payments if they want to pay off their loan a little more quickly.
For first home buyers making their foray into the property market, this loan offers quite a number of useful features. The rate discount for the first three years is handy, but borrowers would be wise to consider whether they will be able to make the repayments when it reverts to the standard variable, which is relatively high.
The offset account, redraw facility and top up function are all convenient features and in combination with the first home owners grant, may make this loan appealing to first home buyers looking for flexibility.