A review of Nova Credit Union’s range of home loan packages
Nova Credit Union, of Newcastle, New South Wales (NSW) has been a banking alternative for employees of the Hunter Water Board since 1964.
Originally the Hunter Water Board Employees Credit Union, Nova Credit Union merged with the Newcastle Herald Employees Credit Union. With this expansion they are able to provide products and services to a larger group of individuals.
Who is Nova Credit Union?
Nova Credit Union is a customer-owned credit union able to provide loan products to its members, including home loans. Home loans are for residential property only, but available for both owner occupants and investors. Variable interest rates are offered, as well as an interest-only option for investors. With Nova Credit Union you are enabled to build your home loan to suit your needs, choosing from a number of different features. The money borrowed may be towards a house or for a land purchase. Included is also the opportunity to release existing equity in your home with a refinance loan.
Home loans provided by Nova Credit Union
With Nova Credit Union you choose from the Nova Basic Variable Home Loan or the Standard Home Loan Variable Rate and then add the features that suit your purpose. In addition to the options for how interest is charged, you also can choose a line of credit loan that lets you draw money when you need it.
The home loans are offered for amounts between $30,000 and $500,000, up to 95% of the property’s value, for a term of up to 30 years. You can choose the payment schedule and make additional repayments when possible. Nova Credit Union also offers a redraw facility that lets you take that money back, at a $500 minimum, when you need the cash for something else.
Pros and cons of Nova Credit Union home loans
If you choose to apply for a home loan from Nova Credit Union you will have the choice of the following features:
- Loan structure. You get to decide which features and benefits to add to your home loan.
- Interest-only option. The ability to pay only the interest portion of a home loan for a specified period of time.
- Loan to value ratio (LVR). With an LVR of up to 95%, a homebuyer would not need a large deposit amount.
- Insurance. Nova Credit Union is also able to provide insurance covers for your new home or investment property.
- Membership. Only members of the credit union are eligible to apply for the home loans offered by Nova. There is an application for membership offered online.
- Fees. The fees for the home loan are not disclosed until after the application has been accepted.
How to apply for a Nova Credit Union home loan
Nova Credit Union makes it easy to begin the application process by allowing you to start right on their website:
- Downloadable application. You can download the application from your computer, fill it out and either mail it to Nova Credit Union or send it to them by fax.
- You will be contacted by a loan manager from Nova. After reviewing your application, a home loan professional will contact you to discuss the options you have.
- Supporting documents. At the very bottom of the application you will find a list of documents that must be sent in along with your application.
Documents needed to apply for a Nova Credit Union home loan
The first section of the application is going to ask you specific personal information including:
- Identification information. Your full name, age and driver’s licence number to help prove your identity.
- Contact information. Your current address, telephone number and work phone number.
The property to be used as security for the home loan will be of special interest to the credit union:
- Sale contract. This legal document outlines the details of the sale.
- Certificate of title. A title shows that the seller is the rightful owner of the property.
- Transfer of land. This is necessary to show that the property purchased has been transferred into the name of the borrower.
Your personal finances will also be of concern to the credit union:
- Income. Your base income after tax, rent income, family allowances and any other income.
- Assets. The estimated value of your home, furnishings, car and any other assets.
- Other loans. This includes credit cards, store accounts and personal loans that you are responsible for.