From fixed interest rates to 100% offset accounts, Warwick Credit Union has all the features you’re looking for when searching for a home loan
Warwick Credit Union is able to assist you when purchasing a home by offering up to eight different home loan products. Whatever perks or benefits you want with your home loan, Warwick may be able to help.
What is Warwick Credit Union?
Warwick Credit Union was founded in 1970 by members of the Warwick district. Since then it has branched out to serve other local communities such as Killarney, Allora, Inglewood and Dalby. Now with over 10,000 members, they're in a position to offer a range of banking services.
Not only do they have a line of home loan products, Warwick Credit Union also provides business and personal banking solutions, insurance covers and travel needs.
Compare Warwick Credit Union Home Loans
Home loans provided by Warwick Credit Union
Home Owners Package
For members looking to combine multiple products through Warwick, this loan can offer discounts on interest rates. By bundling services with the Classic Loan or Line of Credit, you can save over $1,300 every year in interest with 0.35% p.a. and 0.25% p.a. respectively.
With this package you get the full advantage of an offset account and a redraw facility. The redraw allows you access to extra repayments at a minimum of $1,000 while the offset account can help you save money on interest payments.
Essential Loan
Available for new constructions, the Essential Loan is a variable rate home loan that offers a redraw facility and doesn’t charge early payout fees. You have the choice of making monthly, fortnightly or weekly repayments as well as interest-only payments.
Classic Loan
By combining this loan with an account product from Warwick Credit Union you not only shave points off the interest rate, you get a 100% offset account. This could help save you thousands of dollars over the course of the home loan.
You also have flexible repayment options and the choice to make interest-only repayments. Extra repayments are also allowed with no penalty, and you are not going to be charged any type of monthly maintenance fee.
Premium Loan
With its 100% offset account, this loan makes it possible to complete the terms of your home loan early without having to pay a penalty. The Premium Loan is also equipped with a redraw facility that lets you withdraw extra repayments of at least $1,000.
Your repayment options are flexible, with the choice to pay weekly, fortnightly and monthly. Plus, you can make interest-only repayments if you want to try and save some money for an investment.
Classic Fixed Rate Loan
This version of the Classic Loan allows you to choose a fixed rate period of one or two years. You may even extend that another one or two years once that term ends.
There are no monthly fees paid with this home loan. You can also fix the repayments to coincide with your paycheque by choosing between a monthly, fortnightly or weekly due dates or choose interest only repayments or large lump sums.
Premium Fixed Rate Loan
The Premium Fixed Rate Loan allows for a fixed rate of up to two years before reverting to the variable rate, but with a 100% offset account. You can also pay a fee and extend the fixed rate period.
Lump sum repayments are allowed without any penalty, and can be withdrawn for a minimum of $1,000 from a redraw facility. There is a monthly fee with this loan package, but you still get the flexible repayments and interest only option.
Line of Credit
The Lifestyle Equity Line of Credit uses the equity you have built into your home as a line of credit. This can be for large purchases or to pay your monthly expenses.
There are no set repayments with the line of credit until you have exhausted the funds. You will be charged a monthly fee but can also have your paycheque rolled directly into the account.
Home Equity Loan
This loan also allows you to use your home's equity, but as a lump sum rather than a revolving line of credit. The interest rate is variable and the terms of the loan will not extend past seven years.
The repayment options are flexible and allow for lump sum repayments at any time. If you do pay the balance of the loan before the end of your terms, there is not going to be any penalty charge.
Pros and cons
With a large variety of choices with your home loan, it's important that you examine the features carefully to find the one that has all that you are looking for:
Pros
- Discounted interest. By utilising other products that Warwick Credit Union offers you can reduce the yearly interest rate charged to your home loan.
- Fixed rate options. For some, the security of a fixed interest rate is important during the first years in a new home.
- Banking products. Having a full line of banking products in one institution lets you take advantage of features such as offset accounts.
- Fees. You will find that some of these home loans do not charge any monthly fees.
Cons
- Membership. Only members of Warwick Credit Union can access these loan products. You can apply for membership online and will have to pay $10 for a share.
- Membership fees. Warwick also charges for its membership by making $5 deductions from your transaction or savings account monthly.
How to apply for a Warwick Credit Union home loan
Warwick Credit Union is flexible in its application process. You can begin to fill out your loan application online. If at any time you need to quit, it will be saved for you to finish at a later date.
Personal information
Before applying for a home loan, you are going to need to be able to verify your identity. This is done using the following documentation:
- One of: To meet the identity criteria you may show one of the following: a state or territory issued driver’s licence or Photo ID proof of age card, an Australian passport, a foreign passport accompanied by an English translation if applicable, or a national ID card translated into English.
- Two of: If a photo ID is not available you may be able to use a birth certificate or pension card if it is accompanied by a notice from the Commonwealth or Australian Tax Office.
Property information
Warwick Credit Union is also going to need specific information regarding the property being used to secure the home loan. This will include:
- Contract of sale. A legally binding document, the sales contract outlines details of the property and the purchase.
- Certificate of title. This is a document that shows the current owner of the property. The credit union will need to see this to ensure that the seller is permitted to transfer ownership to you.
- Transfer of land. The transfer of land document shows that the land being purchased is going to be transferred into your name.
Financial information
Credit unions are obligated to ensure that the taking on of a home loan will not put you in financial hardship. To accomplish this you will need to provide the following documents:
- Your salary. How much you earn before and after taxes, not only from your job but also from other sources like investments.
- Your assets. These are items of value which you already own and include property, cars and savings accounts.
- Liabilities. How much you are responsible for financially every month. Included in this are any other loans you may have, credit card debts and expenses.
