The SCU Standard Variable Home Loan has a high variable rate but includes a 100 per cent offset account to help reduce the amount of interest payable on your loan.
It also allows you to make additional repayments towards your loan balance without having to pay any penalty fees.
A perk of this loan is the redraw facility where you can redraw any of the funds you’ve put towards your loan as additional repayments.
However, there is a minimum amount you must redraw each time and you will be charged a fee for using this feature.
The Standard Variable Home Loan also features a flexible schedule in which you can make your loan repayments monthly, fortnightly or weekly and choose to have your repayments automatically taken out of your account or through salary credit.
You only have to put down a small deposit in order to pull out the Standard Variable Home Loan since you can borrow up to 95 per cent of your property’s value, which could be attractive for first home buyers. But if you’re going to make a deposit less than 20 per cent, make sure you factor lenders mortgage insurance payments into the total cost of this loan.
The small deposit required could attract first home buyers however the high variable rate is a sizeable deterrent. This loan is only available for owner-occupied properties, so the Standard Variable Home Loan would not suit investors.
The biggest downfall of the SCU Standard Variable Home Loan is the high variable interest rate. And, combined with the moderately high upfront cost, discharge fee and fees for redrawing early repayments, it could add up to be a costly endeavour.
Although, you will have the opportunity to offset the interest you own on your loan through the 100 per cent offset account option. Figuring out if this is the best home loan option for you really depends on your needs.
The SCU Standard Variable Home Loan can be researched further at the below link.