Offset Investment Loan ($150k-$250k, LVR 80%-95%)
- Last updated on 08 Jul 2020
based on $300,000 loan amount for 25 years
- 100% full offset account
- 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
100% offset account
Unlimited extra repayments
Redraw fee: $25
Allows split interest
ACT, NSW, NT, QLD, SA, TAS, VIC, WA
Total estimated upfront fees
Other upfront fee
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.
An offset account functions as a transaction account that is linked to your home loan. The balance of this account is offset daily against the loan amount and reduces the amount of principal that you pay interest on.
By using an offset account it’s possible to reduce the length of your loan and the total amount of interest payed by thousands of dollars.
Example: If you have a mortgage of $500,000 but holding an offset account with $50,000, you will only pay interest on $450,000 rather then $500,000.