Sydney Mutual Bank First Home Buyer Loan review
The Sydney Mutual Bank 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.
About this loan
What are the features and benefits of the Sydney Mutual Bank First Home Buyer Loan?
- Loan term. The unique characteristic of theSydney Mutual Bank 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 Sydney Mutual Bank First Home Buyer Loan has a minimum borrowing amount of $20,000. 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, butSydney Mutual Bank offers a Family Support option that will allow you to avoid LMI if your parents go guarantor on your home loan.
- Repayment flexibility. TheSydney Mutual Bank First Home Buyer Loan allows you to make unlimited additional repayments.
- Redraw account. TheSydney Mutual Bank 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. TheSydney Mutual Bank 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: $0. This one-off fee covers the cost of processing your application.
- Discharge fee: $180. The discharge fee applies when you close your home loan account.
How to apply
If you've compared your options and believe that the Sydney Mutual Bank First Home Buyer Loan could suit your needs, click the button below to be redirected to Sydney Mutual Bank's website where you'll be taken through the application process.