Equity Extra Investment Overdraft ($150k-$250k, LVR 80%-95%)
based on $300,000 loan amount for 25 years
- Suitable for low deposits
- Extra repayments + redraw services
- Repayments may decrease if RBA cuts rates
- Discharge fee at end of loan
- Repayments may increase if RBA raises rates
Interest rate structure
$150k - $250k
Principal & interest
Loan term range
1 - 30 years
Unlimited extra repayments
Redraw fee: $25
Allows split interest
Investors, Line of Credit
ACT, NSW, NT, QLD, SA, TAS, VIC, WA
Estimated upfront fees
Minimum SMSF Amount
Compare and review home loans with similar features
Summerland Credit Union is based in NSW and offers a wide range of financial products and services, including home loans, saving and investment accounts and insurance products. You need to be a member to bank with this credit union, but anyone can join using Summerland’s online membership application. Summerland’s profits are reinvested into the business and members, who also get a say in how the credit union is run. Summerland meets the same regulatory standards as banks, so your money is as safe.
Summerland Home Loan Calculator
Interested in an Summerland home loan? RateCity has a suite of calculators that can show you what your repayments would be and how Summerland compares to its competitors. Simply plug in your borrowing amount below.
It’s no longer possible to get a no-deposit home loan in Australia. In some circumstances, you might be able to take out a mortgage with a 5 per cent deposit – but before you do so, it’s important to weigh up the pros and cons.
The big advantage of borrowing 95 per cent (also known as a 95 per cent home loan) is that you get to buy your property sooner. That may be particularly important if you plan to purchase in a rising market, where prices are increasing faster than you can accumulate savings.
But 95 per cent home loans also have disadvantages. First, the 95 per cent home loan market is relatively small, so you’ll have fewer options to choose from. Second, you’ll probably have to pay LMI (lender’s mortgage insurance). Third, you’ll probably be charged a higher interest rate. Fourth, the more you borrow, the more you’ll ultimately have to pay in interest. Fifth, if your property declines in value, your mortgage might end up being worth more than your home.
Lender’s Mortgage Insurance (LMI) is an insurance policy, which protects your bank if you default on the loan (i.e. stop paying your loan). While the bank takes out the policy, you pay the premium. Generally you can ‘capitalise’ the premium – meaning that instead of paying it upfront in one hit, you roll it into the total amount you owe, and it becomes part of your regular mortgage repayments.
This additional cost is typically required when you have less than 20 per cent savings, or a loan with an LVR of 80 per cent or higher, and it can run into thousands of dollars. The policy is not transferrable, so if you sell and buy a new house with less than 20 per cent equity, then you’ll be required to foot the bill again, even if you borrow with the same lender.
Some lenders, such as the Commonwealth Bank, charge customers with a small deposit a Low Deposit Premium or LDP instead of LMI. The cost of the premium is included in your loan so you pay it off over time.