The Transport Mutual Credit Union Fixed Rate Home Loan offers a fixed rate of interest for a term of one year, though, the rate available is high and there is no 100 per cent offset account offered to help you to reduce the amount of interest you owe.
However, you can work towards paying your loan quicker and, thus, reduce your total interest payable through making additional repayments at any time without penalty.
These extra repayments will be accompanied by a redraw facility, enabling the withdrawal of funds put towards extra repayments so you have the security of knowing that your funds will be accessible. However, the minimum amount you have to redraw is quite high.
Weekly, fortnightly and monthly repayments are accepted and if you need to increase your loan amount, the top up facility allows you to apply for extra funds.
Following the fixed term, your interest rate will revert to Transport Mutual Credit Union’s offered high variable rate.
Added insurance options including building and contents and loan repayment insurance policies are available with the Fixed Rate Loan and each are a separate cost.
The Fixed Rate Loan from Transport Mutual Credit Union is most suited to borrowers who meet the minimum loan amount and are looking for only a short fixed term.
The high upfront cost and interest rate might not make this the best option for refinancers and first home buyers, although the top up facility and ability to make early repayments could be appealing options.
The Fixed Rate Home Loan from Transport Mutual Credit Union has a simple set of features that might not make up for the high interest rate and high upfront cost.
However, there are no ongoing fees associated with this loan and the stability of having a fixed rate could still make this an attractive offer.
It’s worthwhile to research the options available to you since there are fixed loans with more features and lower rates available depending on what you’re looking for.
Find out more below about the Transport Mutual Credit Union Fixed Rate Loan.