BDCU Alliance Bank offers a wide range of competitive and flexible home loans
BDCU Alliance Bank was formed by a group of workers from the Southern Portland Cement Works in 1963. From 257 members after its first 12 months of existence, BDCU now has more than 14,000 members and has a loan book of more than $100 million. Membership of BDCU is open to residents of the NSW Southern Highlands and Tablelands and their families.
Who is BDCU Alliance Bank?
Based in the Southern Highlands and Tablelands of NSW, BDCU Alliance Bank has branches in Bowral, Mittagong, Moss Vale and Goulburn. As borrowing money to buy a home is a huge financial decision, the credit union aims to offer a variety of flexible loan options to its members.
From standard variable rate loans through to comprehensive loan packages, BDCU provides loans to suit many different needs and budgets. In all, BDCU offers five loans: Standard Variable, Quick Start, Fixed Loans, Easy Access and the HomeSMART Package Loan.
While the available features vary greatly across these loans, some benefits customers can take advantage of include offset accounts, flexible repayment options and competitive rates.
Home loans offered by BDCU Alliance Bank
Standard Variable Home Loan
The Standard Variable Home Loan from BDCU is the credit union’s most basic offering and comes with a competitive variable interest rate. A 100% mortgage offset account is available to minimise the interest you have to pay, while variable and lump sum repayments are allowed.
A free redraw facility lets you access funds you have already paid towards your loan if needed, and you can pay the loan off early without incurring a penalty. However, a loan establishment fee and a monthly fee do apply.
Quick Start Home Loan
The Quick Start Home Loan offers a discounted variable rate and is designed so that borrowers only have to pay for the loan features they use. Weekly, fortnightly and monthly repayment options are available, while there’s also no penalty charged for early loan repayment. However, an establishment fee and a monthly fee apply, while a $50 fee is charged for redraws.
Fixed Home Loan
A fixed rate home loan from BDCU allow borrowers to fix their interest rates for periods of between one and five years. This offers the peace of mind of set repayment amounts, while customers can choose whether they want to pay their loan off weekly, fortnightly or monthly. A monthly account-keeping fee and an establishment fee apply to this loan.
This is an interest-only line of credit that offers a competitive variable rate. The minimum loan amount is $20,000 and a loan establishment fee of $750 is charged. Although there is no monthly account-keeping fee, you will have to contend with an annual review charge. Lump sum repayments and early repayments without penalty are allowed, providing customers with the option of paying off their debt sooner if they can afford to.
If you’ve got a home loan of more than $150,000, you can apply for the HomeSMART Package loan. For a fee of $395 p.a. borrowers can receive a wide range of benefits, including a discount off either the standard variable rate or fixed rate.
There are no establishment fees or monthly fees to worry about, while borrowers can earn bonus interest on their linked savings account. Other benefits include unlimited transactions on a linked transaction account, no Visa debit or credit card annual fees and insurance discounts.
Pros and cons of BDCU Alliance Bank
- Wide range of options. BDCU offers a wide selection of home loans to suit the needs of a diverse range of borrowers.
- HomeSMART Package. The HomeSMART Package offers a range of attractive discounts and deals to help borrowers better manage their finances across the board.
- Flexible repayment options. The ability to choose between weekly, fortnightly and monthly repayments allows borrowers to tailor a payment schedule to suit their budget.
- Limited branch access and membership. Membership is only available to residents of the NSW Southern Highlands and Tablelands.
How to apply for a BDCU Alliance Bank home loan
If you would like to apply or find out more information about a home loan from BDCU Alliance Bank, please visit their website.
In order to apply for a loan you will need to:
- Be over the age of 18
- Be an Australian resident
- Be a BDCU member (you can join when you fill out your loan application form)
- Have a regular monthly income and a stable job
Documents needed to apply for a BDCU Alliance Bank home loan
BDCU will need to be supplied with certain personal information to verify your details. This includes:
- Proof of identity, this is not required when you apply but you will need to supply it at a later date.
- Your BDCU membership number
- Your name and contact details
- If you have not been living at your current address for at least two years, you’ll need to provide details of your previous address
You will need to supply copies of some official documents to verify the details of the property in question and the sale. These include:
- Contract of sale. The contract of sale outlines all the details of the sale of the property, including how much is paid for it.
- Copy of certificate of title. Without the certificate of title, the lender would be unable to confirm whether the person selling the property actually owns it.
- Copy of transfer of land. The transfer of land document confirms that the ownership of the land will be transferred into the buyer’s name.
Finally, you’ll need to supply some financial information so that BDCU can determine your ability to repay the loan, including:
- Employment information. This includes your employer’s name, address and contact number. If you haven’t been in your current job for at least three years, you’ll also need to provide your previous employer’s details.
- Proof of income. Supply your two most recent payslips or a letter from your employer confirming your income. If you’re self-employed, your tax returns and profit and loss statements for the last two years will be needed.
- Details of your assets and liabilities. If you own assets, for example shares or other investments, they will increase your borrowing power. However, you’ll also need to notify BDCU of any debts and liabilities you may have.
BDCU’s range of home loans offers a competitive range of flexible loan options for a wide range of borrowers. However, it’s important to compare these loans with others on the market to find the right product for your needs.