Teachers Mutual Bank Classic Home Loan

Rates and Fees verified correct on December 4th, 2016

With a competitive rate and useful features, the Teachers Mutual Bank Classic Home Loan is worth comparing.

With a low variable interest rate of 3.79% p.a., the Teachers Mutual Bank Classic Home Loan is available to owner-occupiers for a new purchase or an external refinance.

The Teachers Mutual Bank Classic Home Loan comes with no hidden or monthly ongoing fees, a free redraw facility and a maximum loan-to-value (LVR) ratio of 85%.

Interest Rate Max Insured LVR Max LVR
Owner Occupier
3.79% p.a.
Comparison Rate
3.84% p.a.
85% 80%
Product NameTeachers Mutual Bank Classic Home Loan
Interest Rate TypeVariable
Interest Rate (p.a.)3.91%
Comp Rate^ (p.a.)3.96%
Minimum Loan Amount$150,000
Maximum Loan Amount$1,000,000
Minimum Loan Term0.5 years
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR85%
Mortgage Offset AccountNo
Loan Redraw FacilityYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentNo
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest
Application Fee$600
Valuation Fee$250
Ongoing Fees$0 p.a.
Settlement Fee$150

Pros

  • Extra repayment options.
  • Redraw facility with $0 fee.
  • $0 ongoing fees.
  • Ability to take a repayment holiday if your situation changes.

Cons

  • Minimum deposit of at least 15% required
  • Not available for investment purposes
  • No interest only options
  • Establishment fee of $600
  • Settlement fee of $150

Things to consider about the Teachers Mutual Bank Classic Home Loan

If you’re thinking of applying for the Teachers Mutual Bank Classic Home Loan, keep in mind that there is no penalty if you pay off your loan early. Additionally, there is no minimum redraw amount, which means you have the flexibility of accessing your funds when you need them.

The Teachers Mutual Bank Classic Home Loan also comes with a repayment pause option if you’re unable to meet your periodic repayments due to a lifestyle change.

This loan is available to owner-occupiers only.

Features of the Teachers Mutual Bank Classic Home Loan

  • Loan amount. You can borrow between $150,000 and $1,000,000 with this loan.
  • Maximum LVR. With the Teachers Mutual Bank Classic Home Loan, you can borrow up to 85% LVR (including lenders mortgage insurance and/or mortgage repayment insurance).
  • Loan purpose. This loan is available to owner-occupiers for a new purchase or an external refinance.
  • Redraw facility. A fee-free redraw facility allows you to access additional repayments you’ve made. There is no minimum redraw amount.
  • Repayment pause. If you experience a change in your situation or you find it difficult to meet your mortgage commitments, this loan comes with a repayment pause option that gives you flexibility in your budget and cash flow.
  • Repayment type. With this loan, you can make principal and interest repayments only.
  • Accessibility. You can access your account 24/7 via internet, mobile and phone banking, which is convenient for when you’re on the go.

Fees

Fees you can avoid

  • Ongoing fees: $0. No ongoing monthly fees mean you can focus on repaying your home loan.
  • Rewards package fee: $0. With the Teachers Mutual Bank Classic Home Loan, you can avoid the standard rewards package fee if you decide to bundle your home loan with other products.

Fees you can’t avoid

  • Establishment fee: $600. This fee covers the administration cost of setting up your mortgage documents.
  • Settlement advance fee: $150. The settlement advance fee covers processing costs for the settlement of your home loan.
  • Valuation and administration fee: $250. This fee is charged for any additional valuation or administration required.

How to apply for the Teachers Mutual Bank Classic Home Loan

If you’d like to apply for the Teachers Mutual Bank Classic Home Loan, click on the “Go to site” link to be redirected to the Teachers Mutual Bank website. Here, you can enquire with a Teachers Mutual Bank representative to discuss your eligibility for the loan.

During the application process, you’ll need to provide the following:

  • Personal details. You’ll need to provide your name, date of birth and current residential address.
  • Loan purpose. You’ll need to confirm the loan amount and purpose.
  • Income. Teachers Mutual Bank will need information about your employment and income to determine your serviceability potential.
  • Expenses. During the application process, you’ll need to provide information regarding your living expenses and any debt that you may have such as personal loans or credit cards.
  • Property details. Teachers Mutual Bank will need details of the property you want to buy.

The Teachers Mutual Bank Classic Home Loan is a competitive home loan that keeps things simple. Suitable for owner-occupiers borrowing amounts greater than $150,000, this loan comes with useful features, including a free redraw facility and a payment pause option for distressed borrowers.

Before you apply for this loan, compare a range of home loans on the market to make sure it’s a good fit for you.

Teachers Mutual Bank Classic Home Loan Interest Rate History vs RBA Cash Rate Graph

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This page was last modified on 3 March 2016 at 15:17.

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Teachers Mutual Bank Classic Home Loan

  • Interest Rate

    3.91% p.a.

  • Comparison Rate

    3.96% p.a.

  • App Fee / Annual Service Fee

    $600 / $0

  • Max LVR

    80%

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