Borrowers looking for a no fuss, low rate variable loan with flexible features could consider the My Credit Union Introductory Home Loan. But be aware that most discounted home loan offers have a higher revert rate, and this loan is no exception.
After the introductory loan period, this My Credit Union loan reverts to the basic variable rate.
When it comes to paying back the loan, My Credit Union Introductory Home Loan lets you choose between weekly, fortnightly and monthly repayments and gives you the freedom to make additional lump sum payments into the loan which can help reduce the length of the loan and save you interest. Any extra payments made into the loan can be accessed through the free redraw facility if and when you need to. Borrowers looking for extra peace of mind can take repayment insurance which can cover any loan repayments if you’re unable to work.
The My Credit Union Introductory Home Loan will lend you up to 95 percent of the purchase price, however anything over 80 percent may require you to pay lenders mortgage insurance. This loan has a minimum amount of $250,000 and has no penalty for paying off the loan before the set term.
The My Credit Union Introductory Home Loan may be suited to borrowers looking for a low variable rate home loan that gives you the added advantage of flexible repayments and no ongoing monthly fees. The low deposit requirement and no ongoing fees might attract first home buyers, however the high upfront fees, variable rate and lack of interest only payments might make this loan unappealing to investors. This loan has a minimum amount of $250,000.
This Introductory Home Loan gives borrowers access to a very low interest rate for 12 months. After that period, the loan reverts to the My Ideal Home Loan which has a higher rate. Yet, this revert rate is comparatively lower than other loans on the market.
While the initial interest rate is low, this loan has no 100 offset account which is a popular mortgage feature for many borrowers. It’s also worth pointing out that this loan has no split loan feature, which may be off-putting for borrowers that prefer the certainty of fixed and predictable loan repayments.
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.
Follow the provided link for more about the Introductory Variable Home Loan from My Credit Union.