The Mac, a community-based credit union with over $200 million in assets, operates from the Macarthur district in NSW, and has been in operation since 1971.
In addition to their array of home and personal loans, The Mac also provides diverse savings and investments options, business banking solutions, as well as insurance products.
What does The Mac do?
Given that The Mac is a credit union, it’s able to offer products that attract typically competitive fees, and you can also look forward to finding home loans with competitive interest rates. This credit union offers loans for buying new homes, building homes, upgrading or renovating, refinancing existing loans, and even for investment purposes.
Depending on the loan you opt for you can expect features like offset accounts and redraw facilities, and you can find loans that allow you to make extra repayments without attracting penalties. You get to choose between loans that attract variable and fixed interest rates, plus you can access your account over the phone and online.
Home loans provided by The Mac
Variable Home Loan
The Variable Home Loan comes with a loan term of up to 30 years, and doesn’t attract any monthly, annual, or discharge fees. There are no fees for paying off the loan early. Linked Mac deposit accounts also don't attract any transaction fees with this loan. You can borrow as much as 95% of the Loan-to-Value Ratio (LVR), although if the LVR exceeds 80% you'll need to take out and pay for Lenders’ Mortgage Insurance (LMI). You can make weekly, fortnightly, or monthly payments with this loan, and can make extra repayments whenever you like.
Basic Variable Home Loan
This loan offers a loan term of up to 30 years, and its competitive interest rate along with the diverse range of features makes it a great choice for first-time home buyers. While you can borrow up to 95% of the LVR, you'll need LMI if the LVR is more than 95%. This loan doesn’t attract monthly, annual, or exit fees. Additional repayments and early payouts are also not charged for, but you do have to pay an establishment fee. This loan offers a redraw facility, but has a minimum withdrawal amount in place. You can make weekly, fortnightly, or monthly repayments, and this home loan gives you the option to set up automatic repayments.
Offset Home Loan
This home loan comes with a linked 100% offset account that can help minimise how much you pay in the form on interest, and you can also pay your loan off sooner without attracting any penalties. You can borrow up to 95% LVR, but don’t forget to take LMI into account if you don’t have a 20% deposit.
This loan does not attract monthly, annual, or exit fees. Linked Mac deposit accounts don't attract transaction fees, and the same applies for extra repayments as well. You can make repayments weekly, fortnightly, or monthly, and you can access money you've paid as extra repayments through a redraw facility. You have to pay an establishment fee, the loan term can go up to 30 years and you can setup auto repayments.
Interest-Only Home Loan
This loan is best suited for investors as well as for people who want lower interest-only repayments during the initial period of the loan's term. With this loan you have the option to choose between a variable rate and a one or two year fixed rate period. This loan offers a redraw facility that allows you to redraw money you've paid in the form of extra repayments.
Extra repayments don't attract any fee, you don't have to pay a fee for early payout and there are no monthly, annual, or exit fees. This loan has the option of weekly, fortnightly, and monthly repayments and loan terms can extend to 30 years. As with the previous options above, you'll need LMI if you borrow more than 80% of the property’s value, and you can borrow as much as 95% LVR.
This loan is designed to finance the building of a new home or for renovating an existing one. Through this loan, The Mac makes ongoing periodical payments directly to your builder, taking into account the progress that takes place. This means you don't draw the entire amount upfront, minimising how much you pay in the form of interest. Loan terms are available for up to 30 years and it offers flexible repayment options. While you can borrow up to 95% of the property's valuation, LMI comes into play when you need more than 80% of the property's value.
Fixed Home Loan
If you're worried about rising interest rates in the near future, you may want to consider applying for the fixed rate home loan, where you can keep your interest rate fixed for one, two, or three years. This ensures that there’s no change in your repayments during this period. For added flexibility, you also have the option to split the loan in a manner where one portion attracts a fixed rate, and the other, a variable rate. This loan offers a redraw facility, it offers repayment flexibility, and its other features are in line with other home loans offered by The Mac.
Pros and cons of The Mac home loans
- Competitive fees. None of The Mac home loans charge monthly or annual account-keeping fees, and even the variable rate loans allow you to make extra repayments without attracting any penalties. You can also choose to pay your loan sooner without attracting any penalties.
- Competitive interest rates. Since credit unions don't have to transfer their profits to shareholders, they often manage to offer highly competitive interest rates with their homes loans, and The Mac home loans are no different.
- Variety. Even though The Mac is not a bank, it offers more than enough variety through its home loans. You can apply as a first-time home buyer, an investor, as someone who needs refinancing, and even as someone who wants to buy land and construct a home.
- Limited outreach. With branches only in Camden, Narellan, Picton, and Tahmoor, outreach of The Mac remains limited, and this could be viewed as a drawback by many hopeful borrowers.
How to apply for a Mac home loan
If you would like to apply for a home loan from the The Mac, please speak to a mortgage broker or consult The Mac directly. The application will typically involve the following steps:
- Step one. Enter in your contact details, select if you’re applying with a single or joint application, and choose the desired product. If you're not an existing The Mac member, you automatically get an Everyday Savings account. At this point you have to mention how much you want to borrow.
- Step two. This step requires that you enter a variety of personal, employment, and income related information.
Documents needed to apply for a The Mac home loan
As part of the application process you have to submit documents so The Mac can verify your identify, and to do so it can ask for the following:
- Copy of your Australian passport
- Copy of your Australian drivers' licence
- Copy of your Medicare card.
Expect to submit the following property related information:
- Contract of sale
- Copy of transfer of land
- Copy of certificate of title.
To establish your borrowing capacity and your ability to make repayments, The Mac also requires the following:
- A list of all your assets
- A list of all your liabilities
- Your annual gross earnings from all sources.
Remember to compare other home loan in the market, so you know you’re getting the best deal.