Newcastle Permanent Real Equity Credit Facility

Features

The Real Equity Credit Facility offers a line of credit that is secured against your property to give you access to your home’s equity for further investments, home renovations or other purchases, such as a holiday vacation.

However, gaining access to your home’s equity with this loan does come at a price in the form of a high variable interest rate, which is basically standard across the range of line of credit home loan products offered on the market.

While you are only paying the interest due on your loan, the high rate is worth consideration. However, there is a loan split option so you can take advantage of splitting this loan with a fixed rate.

You do have the ability to pay your Real Equity Credit Facility loan off sooner by making additional repayments and you do not have a set repayment schedule you have to adhere to as long as you stay under your approved credit limit.

If you need to take a break from making payments, you will have the ability to take a repayment holiday, but you must first gain approval from the lender.

Customers have the ability to borrow up to 95 per cent of an owner-occupied property and up to 90 percent for an investment property, and there is a minimum amount that you must be borrowing in order to qualify for this loan.

And, if you move homes, you can take the Real Equity Credit Facility loan with you by taking advantage of the loan portability option and switching which property is serving as the security for this loan.

Who is the Newcastle Permanent Real Equity Credit Facility good for?

The Real Equity Credit Facility can be a good option for owner-occupiers and investors alike who wish to access the equity in their property in order to make home improvements or further investments. Also for borrowers who are already members of Newcastle Permanent or know they would like to become one.

This could also be good for borrowers who know they will be moving homes or would like to eventually switch the property serving as the security for this loan since it is portable.

Review - What RateCity says

The Newcastle Permanent Real Equity Credit Facility could be a great option for homeowners who want to unlock some equity given its range of features such as a loan split option, mortgage portability and the ability to take a repayment holiday if you fall behind on payments or need to take a break.

If you meet the minimum loan amount and if you already are or are looking to become a Newcastle Permanent member, this loan could be worth considering, depending on your personal circumstances and needs. However, keep in mind that as with many line of credit loans, you will most likely have to pay a high interest rate so it’s as with any loan, it’s good idea to weigh your priorities and see what your options are.

Newcastle Permanent Real Equity Credit Facility Options

Follow the link below to find out more information about the Newcastle Permanent Real Equity Credit Facility.

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More details

Variable Rates from

5.32%

Advertised rate

5.44%

Comparison rate
Pros
  • Access to the equity in your property.
  • Loan split option.
  • Loan portability.
Cons
  • High variable interest rate.
  • Moderately high establishment fee.
  • Ongoing monthly account fee.
Eligibility

Must be a member of Newcastle Permanent.

Must have minimum loan amount.

Must be over 18 years of age.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $0
  • Discharge fees: $250
  • Ongoing fees: $10 monthly

The Real Equity Credit Facility has a moderately high amount of establishment fees, a monthly ongoing account-keeping fee and an average discharge fee that you will have to pay at the conclusion of your loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Monthly repayments
  • Loan allows split interest rate
About Newcastle Permanent

With branch locations across regional NSW and access to partner banks throughout Australia, Newcastle Permanent is one of Australia’s largest building societies with a commitment to give profits back to customers through its financial products and service in the form of internet and telephone banking.

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