The main feature of the Newcastle Permanent Intro Rate Loan is the certainty you get from fixing the interest rate for the introductory period of the loan.
While the Newcastle Permanent Intro Rate Loan doesn’t have the lowest interest rate on the market, it does allow you to borrow up to 95 percent of the property’s value, which is appealing for first home buyers and owner-occupiers. Be aware however that if you have less than 20 per cent deposit, you will need to pay mortgage insurance.
This loan offers flexible repayment options including interest-only payments and the choice to repay the loan weekly, fortnightly or monthly. You also have the option of making additional repayments, however, in some cases this may attract a fee.
This Newcastle Permanent Loan comes with a redraw facility but only provides for a partial offset option. The loan also offers a “repayment holiday” which allows you take a break from repayments if you are ahead of the minimum repayments.
The Newcastle Permanent Intro Rate Loan is best suited to owner-occupiers, first home buyers and those looking to refinance their loan. This particular product is not available to investors.
The Newcastle Permanent Intro Rate Loan is best suited to owner-occupiers, first home buyers and people looking for a little more certainty in their repayment amounts.
There aren’t many packaging options available on this loan so if you have other accounts and credit cards, this is something to note.
If you’ve got a bit of extra cash, this loan only offers a partial offset facility, rather than a full one, which could end up costing you extra interest over the life of the loan.
While this loan does offer an introductory discount on the interest rate, it doesn’t quite balance out the fact that the ongoing rate is slightly higher than other loans on the market.
There is flexibility in the loan in terms of choosing a payment frequency that best suits your salary and the option of a repayment holiday is nice for those busier, more costly times in life. The lack of a 100 percent offset facility can get costly as your savings grow, which is something to consider throughout the life of the loan.
If you’re looking for predictability in your repayments and appreciate the fact that profits are paid back to its members, then this loan might tick all your boxes.
Follow the link for more about the Intro Rate Home Loan from Newcastle Permanent.