The Northern Beaches Credit Union Fixed Loan allows borrowers to borrow up to 95 per cent of the property value for a loan term of 5-30 years. The fixed period of the loan will last for up to three years before it reverts to a variable rate.
There is a 100 per cent offset account linked to the loan that can assist borrowers in reducing the total amount of interest paid over the life of the loan. Borrowers can also make up to $25,000 in extra repayments to the loan per year without incurring extra costs.
There is a redraw facility attached to the Fixed Loan that has no minimum, however, there will be a small administration fee charged for each use. The repayment structure of the loan is flexible and allows for monthly, fortnightly or weekly repayments to be made.
The Northern Beaches Credit Union Fixed Loan also allows the loan to be split – meaning that a borrower can fix a portion of the principal at the advertised rate and allow the other portion to be charged at a variable rate.
The Northern Beaches Credit Union Fixed Loan is ideal for borrowers who want to secure even a portion of their loan at a low fixed rate. This can help give borrowers piece of mind in regards to their repayment size. It is only available to owner-occupier borrowers and will therefore not be suitable for investors.
Borrowers who want to be able to make unlimited extra repayments to pay off the loan as quickly as possible will most likely not find this loan suitable as it caps extra repayments at $25,000 per year.
The Northern Beaches Credit Union Fixed Loan could be a suitable option for an owner-occupier borrower looking to lock in a competitive interest rate for up to three years. There are some upfront fees that must be taken into account, however, the lack of ongoing fees would be beneficial in keeping overall loan costs down.
The loan offers a 100 per cent offset account as well as a redraw facility although a small fee will be charged to use the redraw. While extra repayments are limited at $25,000 a year, most borrowers would find this a sufficient allowance to make payments above and beyond their monthly requirement.
For more information, have a look at the options for the Northern Beaches Credit Union Fixed Loan below.