But be aware that many discounted home loans revert to a higher interest rate following the introductory period, and this loan is no exception.
Interest rates aside, this loan gives you the freedom to choose from weekly, fortnightly or monthly repayment options and also gives you the option of making unlimited extra payments.
You have the option of interest only payments for a set period of time and if you find yourself needing to free up some funds, you can use the loan redraw facility to access any extra repayments if and when you need to.
This loan has no split loan function, meaning that you can’t separate part of the loan into a fixed interest rate. However, borrowers looking for extra peace of mind can take repayment insurance which can cover any loan repayments if they’re unable to work.
The My Credit Union Ideal Home Loan will lend you up to 95 percent of the purchase price, however loans over 80 percent may need to pay lenders mortgage insurance.
On the downside, the My Credit Union Ideal Home Loan does not offer an offset account.
Borrowers looking to get a head start on their loan repayment might be lured by the low variable interest rate.
Investors and refinancers might find the high upfront fee and lack of 100 percent offset account limiting. The variable interest rate might be off putting for borrowers looking for fixed repayments.
This loan’s introductory rate is very low in comparison to other loans on the market. However, when weighing up your options, make sure that any potential savings made from the low rate aren’t cancelled out by the higher ongoing rate and high upfront fees.
If you’ve got additional credit cards and transaction accounts, this loan has no packaging component which could end up costing you in additional account fees.
My Credit Union has a limited branch network and the phone support is not as convenient as some other lenders which can be a considering for borrowers who prefer face-to-face banking.
Click below to read more about the My Ideal Home Loan from My Credit Union.