The Northern Beaches Credit Union True Loan is offered at different variable and fixed rate options with different features suitable for owner-occupied and investment properties or for construction.
Very low variable interest rates are available on the True Basic Variable Loan for deposit sizes at or greater than 20 per cent, with rates for deposits less than this amount moderately low for owner-occupied properties and within the moderate to moderately high range for investment properties.
The fixed rates available are low and are offered to both owner-occupiers and investors at one, two and three year fixed terms.
However, your fixed rate will revert to the variable rate under the True Value Standard Variable Loan which is a high variable rate of interest.
The best way to combat these higher rates on the Standard Variable Loan and the fixed rate option is through using the offered 100 per cent offset account, which offsets your interest by deducting the balance in your offset savings account from your loan balance and applying your interest to this amount. The offset account is not offered on the Basic Variable Loan option.
All of the True Loan options give you the option to make unlimited early repayments without penalty, with exception to the fixed rate option where you can only make up limited extra repayments each year during your fixed term.
And, there is no minimum redraw amount for using the redraw facility to dip into the extra funds you’ve put towards your additional repayments, although there is a fee each time you use this service.
There are different minimum borrowing amounts for the True Loan options, so check this against your deposit size to ensure they match up. And, you can top up your loan later down the road, but keep in mind that you will be charged a top up application fee.
The True Loan allows you to make your repayments in weekly, fortnightly or monthly instalments as well as through lump sum repayments, all of which can be made through automatic salary or account payments, providing greater flexibility to you and your lifestyle.
The True Loan from Northern Beaches Credit Union is suitable for all types of buyers since there are different options to choose from. If you’re a first homebuyer or an investor, the low deposit requirement could suit you. And, the flexible repayment options could provide added security and flexibility to refinancers looking to make a switch.
Since you must be a member of Northern Beaches Credit Union, this True Loan options would best suit borrowers who meet the member eligibility criteria and who are looking to bank and lend from the credit union, and, of course, to current Northern Beaches Credit Union members.
The True Loan options could be a good home loan option if you are eligible for the lower offered interest rates. However, the large upfront cost, restrictions on certain features for different borrowers and higher interest rates are the biggest downsides to this loan.
Do your due diligence and make sure you know exactly what you qualify for with the True Loan to see if the options available to you are the most beneficial for you in the long run, since the higher interest rates and upfront cost would amount to a pretty big total cost for this loan.
The True Loan from Northern Beaches Credit Union has variable and fixed rate options for different borrowers. Find out more information at the links below for each option.