The Transport Mutual Credit Union Basic Loan is a basic home loan with flexible repayment options, starting with a choice of weekly, fortnightly or monthly instalments as well as the choice to make early and lump sum repayments without being charged any penalty fees. Making additional repayments could save you a lot on interest since you can take months and even years off the life of your loan – which is a handy feature considering the variable rate on this loan is high.
Any money deposited toward extra repayments will remain accessible through the redraw facility, however there is a large minimum amount you must redraw each time. And, you will have access to an offset account that will give you the opportunity to offset your interest with the balance of this offset savings account, however check with Transport Mutual Credit Union to see if you’ll be able to access this as a 100 per cent or partial offset account.
You will also have access to a top up facility, allowing you to ask for an increase in your loan for purposes of renovation or construction. Loan repayment insurance and building and contents insurance is also available with your Basic Loan as separate added costs.
The Basic Loan could suit borrowers looking for a simple and straightforward loan with some flexibility in terms of repayments. Borrowers hoping to pay off their loan sooner rather than later will be able to use the additional repayments and offset account available or top up if more funds are needed.
The Transport Mutual Credit Union Basic Loan offers a set of useful features that could help you to close your loan sooner as well as versatility such as a redraw and top up facility should you need more funds. However, the high upfront cost and high variable interest rate could outweigh the benefits of this loan so it’s worthwhile to compare other basic loan options with similar features to see if the Basic Loan is the one for you.
The Basic Variable Home Loan from Transport Mutual Credit Union can be researched further at the provided link.