The Mutual Home Loan is available for a range of borrowing needs – whether you’re purchasing or building a home or investment property or refinancing – and the variable interest rate offered to owner-occupiers is moderately low and to investors is moderate. While not the lowest, this loan gives you the ability to structure your repayments to best suit you with features that can help you to reduce the total interest you must pay throughout your loan term.
Principal and interest repayments can be made on a monthly, fortnightly or weekly schedule and you have the option of making interest-only repayments for a period, which can typically be made monthly and is a particularly attractive feature for investors. A partial offset account is offered on this loan through a savings account with The Mutual, which would allow you to deposit savings into this account which would then directly offset the interest payable on your loan. However, you don’t get full offset benefits since it is not a 100 per cent offset account.
Additional repayments can also be made, which would help you to reduce your total loan amount through potentially take years off your loan – saving you money on interest. This feature is complemented by a redraw facility to give you the ability to withdraw the funds that you’ve put towards extra repayments, giving you more control over your finances.
To be eligible for the Mutual Home Loan, you must be a member of The Mutual or apply to join and you must be within the tight minimum and maximum allowed borrowing amount. Only a small deposit is required for this loan, although lenders mortgage insurance must be paid for making any deposit less than 20 per cent.
The Mutual Home Loan is available to borrowers looking for an affordable loan of small to medium size that will offer a good deal of control over interest structure and payments. The interest-only option may appeal to investors, while the extra repayments may appeal particularly to owner-occupiers.
The Mutual Home Loan is a basic loan offering with a competitive variable interest rate, which could end up being a suitable option for you should you meet the eligibility criteria and should this loan stack up against your wish list. The biggest downsides of the Mutual Home Loan are the entry and exit fees and the lack of a 100 per cent offset account, though partial, you can’t take full advantage as you would if it were 100 per cent offset, as there are other basic variable loans on the market that offer this feature.
Follow the below link for more about the Mutual Home Loan.