The Mutual

Express Credit Facility

Advertised Rate

4.39%

Variable

Comparison Rate*

4.54%

Maximum LVR
90%
Real Time Rating™

0.91

/ 5
Monthly Repayment

$1,501

based on $300,000 loan amount for 25 years at 4.54%

Advertised Rate

4.39%

Variable

Comparison Rate*

4.54%

Maximum LVR
90%
Real Time Rating™

0.91

/ 5
Monthly Repayment

$1,501

based on $300,000 loan amount for 25 years at 4.54%

Pros and Cons

Pros and Cons

    • No extra repayments
    • No redraw and no offset
    • Ongoing fee
    • Discharge fee at end of loan

    Features and Fees

    The Mutual Features and Fees

    Details

    Maximum LVR

    90%

    Total Repayments

    Next LVR

    Interest rate type

    Variable

    Borrowing range

    Suitable for

    Line of Credit, Owner Occupiers

    Loan term range

    1 - 30 years

    Principal & interest

    Interest only

    Applicable states

    ACT, NSW, QLD, VIC

    Make repayments

    Fortnightly, Monthly, Weekly

    Features

    Extra repayments

    Not Allowed

    Redraw facility

    Split interest facility

    Loan portable

    Repayment holiday available

    Allow guarantors

    Available for first home buyers

    Fees

    Total estimated upfront fees

    $450

    Application fee

    $300

    Valuation fee

    $0

    Settlement fee

    $150

    Other upfront fee

    $0

    Ongoing fee

    $10 monthly

    Discharge fee

    $200

    Application method

    Online

    Phone

    Broker

    In branch

    Pros and Cons

      • No extra repayments
      • No redraw and no offset
      • Ongoing fee
      • Discharge fee at end of loan

      The Mutual Features and Fees

      Details

      Maximum LVR

      90%

      Total Repayments

      Next LVR

      Interest rate type

      Variable

      Borrowing range

      Suitable for

      Line of Credit, Owner Occupiers

      Loan term range

      1 - 30 years

      Principal & interest

      Interest only

      Applicable states

      ACT, NSW, QLD, VIC

      Make repayments

      Fortnightly, Monthly, Weekly

      Features

      Extra repayments

      Not Allowed

      Redraw facility

      Split interest facility

      Loan portable

      Repayment holiday available

      Allow guarantors

      Available for first home buyers

      Fees

      Total estimated upfront fees

      $450

      Application fee

      $300

      Valuation fee

      $0

      Settlement fee

      $150

      Other upfront fee

      $0

      Ongoing fee

      $10 monthly

      Discharge fee

      $200

      Application method

      Online

      Phone

      Broker

      In branch

      FAQs

      Interest Rate

      Your current home loan interest rate. To accurately calculate how much you could save, an accurate interest figure is required. If you are not certain, check your bank statement or log into your mortgage account.

      How can I get ANZ home loan pre-approval?

      Shopping for a new home is an exciting experience and getting a pre-approval on the loan may give you the peace of mind that you are looking at properties within your budget. 

      At the time of applying for the ANZ Bank home loan pre-approval, you will be required to provide proof of employment and income, along with records of your savings and debts.

      An ANZ home loan pre-approval time frame is usually up to three months. However, being pre-approved doesn’t necessarily mean you will get your home loan. Other factors could lead to your home loan application being rejected, even with a prior pre-approval. Some factors include the property evaluation not meeting the bank’s criteria or a change in your financial circumstances.

      You can make an application for ANZ home loan pre-approval online or call on 1800100641 Mon-Fri 8.00 am to 8.00 pm (AEST).

      Monthly Repayment

      Your current monthly home loan repayment. To accurately calculate how much you could save, an accurate payment figure is required. If you are not certain, check your bank statement.

      Remaining loan term

      The length of time it will take to pay off your current home loan, based on the currently-entered mortgage balance, monthly repayment and interest rate.

      Who offers 40 year mortgages?

      Home loans spanning 40 years are offered by select lenders, though the loan period is much longer than a standard 30-year home loan. You're more likely to find a maximum of 35 years, such as is the case with Teacher’s Mutual Bank

      Currently, 40 year home loan lenders in Australia include AlphaBeta Money, BCU, G&C Mutual Bank, Pepper, and Sydney Mutual Bank.

      Even though these lengthier loans 35 to 40 year loans do exist on the market, they are not overwhelmingly popular, as the extra interest you pay compared to a 30-year loan can be over $100,000 or more.

      Savings over

      Select a number of years to see how much money you can save with different home loans over time.

      e.g. To see how much you could save in two years by switching mortgages,  set the slider to 2.

      Does Australia have no cost refinancing?

      No Cost Refinancing is an option available in the US where the lender or broker covers your switching costs, such as appraisal fees and settlement costs. Unfortunately, no cost refinancing isn’t available in Australia.

      Can I change jobs while I am applying for a home loan?

      Whether you’re a new borrower or you’re refinancing your home loan, many lenders require you to be in a permanent job with the same employer for at least 6 months before applying for a home loan. Different lenders have different requirements. 

      If your work situation changes for any reason while you’re applying for a mortgage, this could reduce your chances of successfully completing the process. Contacting the lender as soon as you know your employment situation is changing may allow you to work something out. 

      If I don't like my new lender after I refinance, can I go back to my previous lender?

      If you wish to return to your previous lender after refinancing, you will have to go through the refinancing process again and pay a second set of discharge and upfront fees. 

      Therefore, before you refinance, it’s important to weigh up the new prospective lender against your current lender in a number of areas, including fees, flexibility, customer service and interest rate.

      Can I refinance if I have other products bundled with my home loan?

      If your home loan was part of a package deal that included access to credit cards, transaction accounts or term deposits from the same lender, switching all of these over to a new lender can seem daunting. However, some lenders offer to manage part of this process for you as an incentive to refinance with them – contact your lender to learn more about what they offer.

      What is an ombudsman?

      An complaints officer – previously referred to as an ombudsman -looks at formal complaints from customers about their credit providers, and helps to find a fair and independent solution to these problems.

      These services are handled by the Australian Financial Complaints Authority, a non-profit government organisation that addresses and resolves financial disputes between customers and financial service providers.

      How much of the RBA rate cut do lenders pass on to borrowers?

      When the Reserve Bank of Australia cuts its official cash rate, there is no guarantee lenders will then pass that cut on to lenders by way of lower interest rates. 

      Sometimes lenders pass on the cut in full, sometimes they partially pass on the cut, sometimes they don’t at all. When they don’t, they often defend the decision by saying they need to balance the needs of their shareholders with the needs of their borrowers. 

      As the attached graph shows, more recent cuts have seen less lenders passing on the full RBA interest rate cut; the average lender was more likely to pass on about two-thirds of the 25 basis points cut to its borrowers.  image002

      How personalised is my rating?

      Real Time Ratings produces instant scores for loan products and updates them based what you tell us about what you’re looking for in a loan. In that sense, we believe the ratings are as close as you get to personalised; the more you tell us, the more we customise to ratings to your needs. Some borrowers value flexibility, while others want the lowest cost loan. Your preferences will be reflected in the rating. 

      We also take a shorter term, more realistic view of how long borrowers hold onto their loan, which gives you a better idea about the true borrowing costs. We take your loan details and calculate how much each of the relevent loans would cost you on average each month over the next five years. We assess the overall flexibility of each loan and give you an easy indication of which ones are likely to adjust to your needs over time. 

      Do other comparison sites offer the same service?

      Real Time RatingsTM is the only online system that ranks the home loan market based on your personal borrowing preferences. Until now, home loans have been rated based on outdated data. Our system is unique because it reacts to changes as soon as we update our database.

      How does Real Time Ratings work?

      Real Time RatingsTM looks at your individual home loan requirements and uses this information to rank every applicable home loan in our database out of five.

      This score is based on two main factors – cost and flexibility.

      Cost is calculated by looking at the interest rates and fees over the first five years of the loan.

      Flexibility is based on whether a loan offers features such as an offset account, redraw facility and extra repayments.

      Real Time RatingsTM also includes the following assumptions:

      • Costs are calculated on the current variable rate however they could change in the future.
      • Loans are assumed to be principal and interest
      • Fixed-rate loans with terms greater than five years are still assessed on a five-year basis, so 10-year fixed loans are assessed as being only five years’ long.
      • Break costs are not included.

      What fees are there when buying a house?

      Buying a home comes with ‘hidden fees’ that should be factored in when considering how much the total cost of your new home will be. These can include stamp duty, title registration costs, building inspection fees, loan establishment fee, lenders mortgage insurance (LMI), legal fees and bank valuation costs.

      Tip: you can calculate your stamp duty costs as well as LMI in Rate City mortgage repayments calculator

      Some of these fees can be taken out of the mix, such as LMI, if you have a big enough deposit or by asking your lender to waive establishment fees for your loan. Even so, fees can run into the thousands of dollars on top of the purchase price.

      Keep this in mind when deciding if you are ready to make the move in to the property market.

      What is the flexibility score?

      Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.

      How can I avoid mortgage insurance?

      Lenders mortgage insurance (LMI) can be avoided by having a substantial deposit saved up before you apply for a loan, usually around 20 per cent or more (or a LVR of 80 per cent or less). This amount needs to be considered genuine savings by your lender so it has to have been in your account for three months rather than a lump sum that has just been deposited.

      Some lenders may even require a six months saving history so the best way to ensure you don’t end up paying LMI is to plan ahead for your home loan and save regularly.

      Tip: You can use RateCity mortgage repayment calculator to calculate your LMI based on your borrowing profile

      What is upfront fee?

      An ‘upfront’ or ‘application’ fee is a one-off expense you are charged by your bank when you take out a loan. The average start-up fee is around $600 however there are over 1,000 loans on the market with none at all. If the loan you want does include an application fee, try and negotiate to have it waived. You’ll be surprised what your bank agrees to when they want your business.

      What is a cooling-off period?

      Once a home loan’s contracts are exchanged between the borrower and the lender, a five-day cooling-off period follows, during which the contracts may be cancelled if needed.