Teachers Mutual Bank Flexi Choice Loan

Features

The Teachers Flexi Choice Home Loan is available to a range of different borrowers whether you’re an investor, owner-occupier, first home buyer or a refinancer. The Flexi Choice Home Loan will let you borrow with as little as five percent deposit, assuming you meet the bank’s serviceability criteria, and you can top up your loan amount should you need to borrow more down the line. However, this flexibility does come at a price with relatively high interest rates and application fees.

The Teachers Flexi Choice Loan does have a split loan feature, meaning you can fix a component of your loan at a much lower rate for between one and five years, while retaining some of the flexibility a variable loan provides. For example, the 100 per cent offset account could help reduce your interest payments you have to make on your loan since it uses the balance of your linked transaction account to reduce your loan interest. If you have the funds available, you can make unlimited additional repayments while having the flexibility to redraw these repayments using the free redraw facility.

You can also structure your repayments to your own schedule by making weekly, fortnightly or monthly. And, if you need to take a break from making your loan repayments, the ability to take a repayment pause takes away some of the stress caused by changes in income or absence from employment. Keep in mind though that you will still owe the total amount of your loan so your payments following your repayment pause may be higher than before you took this break since your repayments will be adjusted to reflect the time you’ve taken out.

This loan also has portability if you are looking to move within your loan period and want to take your Teachers Flexi Choice Home Loan with you. The Teachers Flexi Choice Loan from Teachers Mutual Bank gives you the option to put down a five per cent deposit to secure your property, which is a great way for first homebuyers to find their way in a confusing and costly market. However, be aware that borrowing more than 80 per cent of any property’s value means you will have to pay lenders mortgage insurance.

Who is the Teachers Mutual Bank Teachers Flexi Choice Loan good for?

The strict eligibility criteria for this loan makes it suitable only for borrowers who are in the Australian education sector or who are a family member of a current Teachers Mutual Bank member.

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This loan is suitable for a number of buyers who meet the eligibility criteria, regardless of your knowledge or experience within the housing market. The low deposit size makes getting started doable, however do keep in mind that the rates and fees attached to this loan is quite high, which may outweigh some of the benefits. It’s always best to do your research and take a good look at your options when determining which home loan option is most suitable for you.

Teachers Mutual Bank Flexi Choice Loan Options

More information about the Teachers Mutual Bank Flexi Choice Loan is provided at the link below.

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Variable Rates from

4.75%

Advertised rate

4.79%

Comparison rate
Pros
  • Loan portability option.
  • 100 per cent offset account.
  • Loan split option.
Cons
  • High variable interest rate.
  • Moderately high upfront cost.
  • Limited branch access.
Eligibility

Must be an Australian citizen or permanent resident.

Must be over 18 years of age.

Must work in the Australian education sector or be a family member or partner of a Teachers Mutual Bank Member.

Suitable For
  • First Home Buyers
  • Investors
  • Refinancers
  • Owner-Occupiers
Fees
  • Estimated upfront fees: $930.00
  • Discharge fees: $75
  • Ongoing fees: $0

The fees associated with the Teachers Flexi Choice Home Loan include a moderately high upfront cost and a low discharge fee at the completion of your loan. Also keep in mind that making any less than a 20 per cent deposit on your property means you will have to pay insurance to protect your lender. You will also have to pay a fee if you top up your loan amount.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Teachers Mutual Bank

The Teachers Mutual Bank is a credit union with products tailored to the needs of educators and the families and partners of people in the Australian education industry. Teachers Mutual Bank has a call centre that is open for six days a week for varying hours. There is also 24/7 mobile and online banking access.

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