Established specifically with helping low income families in mind, Central Murray Credit Union continues this commitment with pre-approved home loans for their members.
When you look at the home loans offered by Central Murray Credit Union (CMCU) you are going to find many of the same features offered by big banks. As a member owned financial institution, it has been their goal since forming in 1972 to assist those residing in regional Australia when other institutions won’t.
Who is CMCU?
CMCU is a community based banking provider located on the Murray River. Their members are made up of Australians from both Southern New South Wales and North East Victoria. Not only do they provide members with savings and transactions accounts, they also offer home loans to assist with the purchase of property. CMCU allows home buyers to get approval on a loan first in order to make the searching for a new home that much easier. Members also benefit with home loan options such as fixed rates and flexible repayments.
Compare Central Murray Credit Union (CMCU) home loans
Fixed Rate Home Loan
The fixed rate home loan gives you repayment security for a period of six months or one year. During that time you can make your repayments weekly, fortnightly, or monthly but you are unable to make any extra repayments.
There is no monthly fee for a fixed rate home loan, but it also does not include any offset account to help with lowering interest or a redraw facility. If you already have a home loan with CMCU or one with a reduced rate you will not be approved for this home loan.
Variable Rate Home Loan
CMCU also offers a home loan at a variable interest rate. There are no fees charged each month, flexible repayments, and the benefit of a 100% offset account and free withdrawals via internet banking.
Established Property Home Loan
An established property home loan lets you choose between the fixed rate home loan, the variable rate, a home equity loan or any combination of the three. You may borrow up to 80% of the property value or 95% if you also pay for Lender’s Mortgage Insurance (LMI).
Redraw is only made available while you are under the variable interest rate, and during this time there is no penalty for making extra or early repayments. The maximum term for the home loan is 30 years with the fixed rate for one to five years.
With a loan limit of up to $750,000 you can secure funding to construct a new owner occupied dwelling or residential investment property. Without LMI you may borrow up to 80% of the property and cost of construction or 95% with LMI, dependent on the estimated value of the completed construction project.
Loan terms are up to 30 years during which time you can make weekly, fortnightly and monthly repayments. Extra and early repayments are allowed without penalty during the variable rate period of the home loan.
Home Equity Account
This home loan is an overdraft that is part of your CMCU EveryDay Access Account. This allows you to use built up equity in your home towards small purchases as well as large ones. The money is accessed using your account or a credit card and your income is paid into the loan.
You are allowed to borrow up to $600,000 in this manner for ten years, after which it reverts to a standard home loan with loan terms of no more than 20 years. 80% of the property value is available or 90% with the purchase of LMI.
For residential land that is no more than five acres you can borrow up to 80% of the purchase price or 90% with LMI. Even if you are not yet ready to build a home, you can use the land as a deposit in the future to finance the construction.
You can refinance a home loan from another financial institution through CMCU. Their loan professionals will take care of the paperwork for you, allowing you to enjoy CMCU's better rates or higher quality of service.
Pros and cons
Central Murray Credit Union allows you to structure your home loan using a number of different features such as:
- Range of interest rates. You can pick whether you want a variable interest rate, or steady repayments for the first five years using a fixed interest rate.
- Specific designs. Not only are there fixed and variable rate options, loans such as the land loan are designed to fit very specific needs.
- 100% offset account. An offset account offered at 100% of your account balance is an option that could save you money in interest payments.
- Pre-approval. By knowing beforehand how much CMCU is able to loan to you, you can search for the home or property within the correct price range.
- Limited application means. There are no means of applying for these products online. You will need to speak with a loan associate directly. Also keep in mind that CMCU only has branches in Yarrawonga, Cobram and Tungamah. This means those not from the Murray River communities in Victoria and New South Wales may find it more difficult to apply and manage their loans.
How to apply for a CMCU home loan
If you are considering applying for one of the various home loans offered by CMCU, you will need to contact their offices, either in Yarawonga or Cobram.
- Pre-approval. If you are asking for pre-approval for a home loan, you may receive an answer in 24 hours.
- Conditions. Once you have picked a home, CMCU may need to have the property valued before establishing the loan.
- Costs. The cost of the application and other related fees will be disclosed by the credit union loan associate at the time of application.
Documents needed to apply for a CMCU home loan
For your protection, proving your identity is a key factor in any lending process. To do this, you will be asked for the following documentation:
- Photo Identification. A current id with your picture will be needed. This could be your passport or driver’s licence.
- Other documentation. In some instances supporting documents will be required such as an employee id card or current utility bill.
If you are first requesting pre-approval for a home loan, you will not be asked for any information regarding the property. Once you have made your purchase choice though, CMCU will need to see copies of the following:
- Contract of sale. When you come to an agreement with the seller, a contract is drawn up that outlines details of the property and the agreed purchase price.
- Certificate of title. A title names the legal owner to a piece of land or property. CMCU will need to see this to ensure that the seller has the legal right to transfer ownership.
- Transfer of land. This is a legal document that changes the name of the owner listed for the property to yours.
Before the loan can be established, CMCU has the responsibility of ensuring that you are financially able to meet its terms. They do this by studying the following information:
- Your employment. Not only will they want your employment details, the credit union is also going to ask for a statement of your earnings. You may add any income that you make outside of your employment if it is a regular payment to you.
- Your assets. The more assets you can list, the better you will look financially. Include any property, automobiles and investment accounts.
- Your liabilities. Liabilities are those periodic financial obligations that you are required to meet, including credit card bills, other loans and your monthly expenses.