SCU First Home Buyer Loan review

The SCU First Home Buyer Loan offers a longer loan term to help first-time buyers manage their repayments.

You can ease into life as a homeowner and reduce your repayments with this competitive variable rate home loan that offers a 40-year loan term.

Product NameSCU First Home Buyer Loan (40 year term)
Interest Rate TypeVariable
Interest Rate (p.a.)3.77%
Comp Rate^ (p.a.)3.81%
Minimum Loan Amount$150,000
Maximum Loan Term40 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Loan PortableYes
Extra RepaymentYes
Repayment TypePrincipal & Interest
Application Fee$200
Lender's Legal Fee$286
Valuation Fee$209
Ongoing Fees$0 p.a.
Settlement Fee$0
Discharge Fee$180

Pros

  • Enjoy lower repayments with a 40-year loan term
  • Guarantor loan option available
  • Flexible repayments

Cons

  • A $200 fee applies
  • A longer loan term means you pay more over the life of the loan

What do I need to know about this loan?

The SCU First Home Buyer Loan is available exclusively to first home buyers who are purchasing a house to live in.

What are the features and benefits of the SCU First Home Buyer Loan?

  • Loan term. The unique characteristic of the SCU First Home Buyer Loan is its 40-year loan term. This can drastically reduce your monthly repayments. For instance, a $500,000 home loan at 4.00% interest on a 30-year loan term would carry monthly repayments of $2,387. If you increased the loan term to 40 years, the repayments would drop to $2,090 per month. Bear in mind, though, that you will pay more in interest over the term of the loan.
  • Loan amount and loan-to-value ratio (LVR). The SCU First Home Buyer Loan has a minimum borrowing amount of $150,000. The loan has a maximum loan-to-value ratio (LVR) of 95%, which means you can get into the market with only a 5% deposit. Borrowing more than 80% will incur a lenders mortgage insurance (LMI) premium, but SCU offers a Family Support option that will allow you to avoid LMI if your parents go guarantor on your home loan.
  • Repayment flexibility. The SCU First Home Buyer Loan allows you to make unlimited additional repayments.
  • Redraw account. The SCU First Home Buyer Loan offers a redraw account, so that if you get ahead on your repayments and need to access the extra funds, you can withdraw them. There is a minimum redraw amount of $2,000.
  • Portability. The SCU First Home Buyer Loan is portable, so that if you move home during the loan period, your loan can move with you.

What fees and charges come with this loan?

  • Application fee: $200. This one-off fee covers the cost of processing your application.
  • Legal fee: $286. This fee covers the legal and administrative costs involved with establishing your home loan.
  • Discharge fee: $180. The discharge fee applies when you close your home loan account.

How do I apply for this loan?

If you've compared your options and believe that the SCU First Home Buyer Loan could suit your needs, click the button below to be redirected to SCU's website where you'll be taken through the application process.

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SCU First Home Buyer Loan (40 year term)

  • Interest Rate

    3.77% p.a.

  • Comparison Rate

    3.81% p.a.

  • App Fee / Annual Service Fee

    $200 / $0

  • Max LVR

    80%

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