Rates on hold but market still awash with home loan bargains
The RBA has this afternoon announced that rates will remain on hold for the moment but banks are continuing to offer low interest rate deals for ideal borrowers with big deposits.
Interest rate structure
$0 - $3.5m
Principal & interest
Loan term range
1 - 30 years
Allows split interest
Line of Credit, Owner Occupiers
ACT, NSW, NT, QLD, SA, TAS, VIC, WA
Estimated upfront fees
Minimum SMSF Amount
G&C Mutual Bank, formerly the SGE Credit Union, is an Australian member-owned mutual bank that was founded in 1959.
The bank has over 36,000 members, with a head office in Sydney and service centres in Melbourne and throughout NSW. It offers a range of financial products, such as home and personal loans, banking accounts and term deposits, insurance and credit cards. It also offers financial planning via a network of G&C Local Business Managers.
G&C Mutual has won a number of awards, including Money Magazine’s Best Savings Account award in 2012.
G&C Mutual Bank Home Loan Calculator
Interested in a G&C Mutual Bank home loan? RateCity has a suite of calculators that can show you what your repayments would be and how G&C Mutual Bank compares to its competitors. Simply plug in your borrowing amount below.
Equity is the value of your property, less any outstanding debt against it. For example, if you have a $500,000 property and a $300,000 mortgage against the property, then you have $200,000 equity. This is the portion of the property that you actually own.
This type of loan is a flexible mortgage that allows you to draw on funds when you need them, similar to a credit card.
Bad credit home loans can be dangerous if the borrower signs up for a loan they’ll struggle to repay. This might occur if the borrower takes out a mortgage at the limit of their financial capacity, especially if they have some combination of a low income, an insecure job and poor savings habits.
Bad credit home loans can also be dangerous if the borrower buys a home in a stagnant or falling market – because if the home has to be sold, they might be left with ‘negative equity’ (where the home is worth less than the mortgage).
That said, bad credit home loans can work out well if the borrower is able to repay the mortgage – for example, if they borrow conservatively, have a decent income, a secure job and good savings habits. Another good sign is if the borrower buys a property in a market that is likely to rise over the long term.
Equity refers to the difference between what your property is worth and how much you owe on it. Essentially, it is the amount you have repaid on your home loan to date, although if your property has gone up in value it can sometimes be a lot more.
You can use the equity in your home loan to finance renovations on your existing property or as a deposit on an investment property. It can also be accessed for other investment opportunities or smaller purchases, such as a car or holiday, using a redraw facility.
Once you are over 65 you can even use the equity in your home loan as a source of income by taking out a reverse mortgage. This will let you access the equity in your loan in the form of regular payments which will be paid back to the bank following your death by selling your property. But like all financial products, it’s best to seek professional advice before you sign on the dotted line.