A community credit union operating in the south west country area of NSW, helping you find the right home loan
Managing over $100 million, South West Slopes (SWSCU) Credit Union has become an important part of the local community it serves.
Since 1973, SWS Credit Union has been growing steadily in the New South Wales communities of Young, Cootamundra, Temora, West Wyalong, Boorowa and Harden. In SWSCU’s first year in operation, they were 144 members strong and had granted 111 loans. Today that membership has grown to 15,000, with home loans being a prominent product offered.
The loans offered by SWS Credit Union come with competitive variable interest rates with no application or monthly fees. The home loan they provide is suitable for the first time home buyer, a new home purchase, or for an investment in residential property. In all of these circumstances, the same features and terms will apply.
Home loans provided by SWS Credit Union
With a home loan from SWSCU you may borrow up to 90% of the loan to value ratio (LVR) for a residential property. For loans approved above 80% LVR you will be required to pay Lender’s Mortgage Insurance (LMI), which is a fee charged to cover the extra risk you present by not having a 20% deposit. The terms for these loans may be up to 30 years, but with no restrictions on additional repayments if you wanted to pay off the loan faster.
When constructing your home loan you will have the option of choosing between weekly, fortnightly, or monthly repayments. You may also withdraw extra repayments at a minimum of $1,000 for no fee if you choose the redraw facility. The maximum you can withdraw is equal to any advance repayments you have made minus one month's payment.
Pros and cons of a South West Slopes Credit Union home loan
A home loan from SWSCU has a flexible structure making it suitable for different purposes. Consider the following features when comparing this loan to those being offered by other financial institutions:
Pros
- Fees. With SWSCU you are not charged any fee for the application or establishment of your home loan. In addition, there's no monthly fee which will save you money over the life of your loan.
- No penalty. If you do repay your total loan before the end of the terms, you will not be subjected to any penalty charges.
- Convenience. You can set up your repayments to be made over the counter at a branch, through direct debit from a transaction account or with salary deductions.
- Free redraw. In the event that you need to use extra repayments made for another purpose, you can redraw them for no fee.
Cons
- Rigid repayments. Investors do not have the option of interest-only repayments.
- Offset account. There's no linked offset account to help bring down your interest payments.
How to apply for a SWS Credit Union home loan
Home buyers may have different preferences when applying for a home loan. SWSCU allows you to choose what is most comfortable for you by offering a few different options:
- In branch. SWSCU has a number of branches in the community where you can go and fill out the application with the help of a loan specialist.
- By fax. You can fill out the application and fax it to a local branch for review.
- Online. Fill out and send the application conveniently from your computer.
With SWS Credit Union, an answer is usually given about your application within 24 hours of receipt. At this time you may be required to submit more detailed information about your personal information, the property and your finances.
Documents needed to apply for a SWS Credit Union home loan
Personal information
The application for the home loan is going to ask for specific personal information about you and your co-applicant if applicable. This will include:
- Photo ID. You will need to supply a copy of your photo identification, such as a driver’s licence or passport.
- Membership number. The credit union will also ask you for your membership number.
Property information
As it is the source of security for the home loan, SWSCU is going to want to know a few things about the property you are buying before approving the application:
- Sale contract. This is the agreement drawn up between you and the seller. It should contain details about the sale and the property.
- Title. This legal document serves to prove that the seller is the owner of the property.
- Land transfer. This document is to show that after the sale, the property is going to be transferred into your name.
Financial information
Your financial information is a key factor not only in whether your home loan is approved, but for how much. SWS Credit Union is going to ask for the following before extending an offer for a home loan:
- Income. This can usually be satisfied by showing your most current pay slips. Just ensure that they contain your full name and your year to date gross and net earnings.
- Assets. Assets include things such as other property, cars and investment or savings accounts.
- Liabilities. When asked about your liabilities, the credit union would like to see information about your current debts. Credit card and loan statements may be required as well as your monthly expenses.
