The SCU Interest Only Loan is a home loan for investors and owner-occupiers making a new purchase or refinancing with an interest-only period that can be especially attractive for investors.
Though, the variable interest rate offered is high – which could mean you might end up paying more in the long run.
However, the 100 percent offset account can help you save thousands of dollars in interest since the balance of this savings account is deducted from your loan balance and interest is only charged on this difference.
If you’re looking for more ways to save, the Interest Only Loan lets you make unlimited additional repayments to help pay off your loan faster, which can be accessed at a later stage using the redraw facility.
And, you can choose to make your repayments in monthly, fortnightly or weekly installments with the option to have these automatically deducted from your account or salary.
Only a small deposit is required on this loan, however deposits under 20 per cent will mean you’ll need to pay additional lenders mortgage insurance.
While this loan has no fixed interest option, borrowers looking for stability can take out loan repayment insurance to cover repayments in the event you become unable to repay. However, an insurance policy is an added cost.
This loan is designed for investors, specifically the interest-only period together with the flexible repayment options and small deposit requirement. However, owner-occupiers are not left out and can still take advantage of this loan.
Interest-only loans are appealing for investors looking to maximise their tax benefits and owner-occupiers looking to take advantage of lower repayment amounts for a period of time.
While there are extra features on this loan, they are somewhat limited so it would be a good idea to check out your options and see if the SCU Interest Only Loan meets your lending criteria.
Follow the link below to find out more about the SCU Interest Only Loan.