Teachers Mutual Bank Interest Only Home Loan Review

Rates and Fees verified correct on December 11th, 2016

With a low variable rate and attractive features, the Teachers Mutual Bank Interest-Only Home Loan is worth considering.

The Teachers Mutual Bank Interest-Only Home Loan comes with a variable interest rate of 5.11% p.a. and is available for an owner-occupied purchase, vacant land, renovations or any other acceptable purpose (upon review from Teachers Mutual Bank).

Featuring a 100% offset account, a free redraw facility and a split loan option, this loan comes with useful features that can help you pay down your debt sooner.

Borrow up to 80% loan-to-value (LVR) ratio without insurance, or borrow up to 95% LVR including lenders mortgage insurance (LMI) and/or mortgage repayment insurance.

Interest Rate Max Insured LVR Max LVR
Variable
5.11% p.a.
Comparison Rate
5.16% p.a.
95% 80%
Product NameTeachers Mutual Bank Interest Only Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$25,000
Maximum Loan Amount$5,000,000
Minimum Loan Term0.5 years
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityYes
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypeInterest Only
Application Fee$600
Lender's Legal Fee$0
Valuation Fee$250
Ongoing Fees$0 p.a.
Settlement Fee$150

Pros

  • 100% offset account attached.
  • $0 redraw fee.
  • $0 ongoing service fees.
  • Available for use for the construction of a home.

Cons

  • $600 establishment fee.
  • $150 settlement fee.
  • If used to purchase an investment property max LVR is 70%.

Things to consider about the Teachers Mutual Bank Interest-Only Home Loan

The Teachers Mutual Bank Interest-Only Home Loan comes with no monthly fees, a repayment pause option and a portability feature. You can also choose either a fixed or variable interest rate.

You can also use this loan to build a home or if you are an investor however for investors the maximum loan-to-value ratio is 70%.

Features of the Teachers Mutual Bank Interest-Only Home Loan

  • Loan amount. This product is suitable for loan amounts of $25,000 or more, making it suit a wide variety of smaller property purchases.
  • Loan purpose. The Teachers Mutual Bank Interest-Only Home Loan can be used for an owner-occupied purchase, vacant land or renovations.
  • Maximum LVR. You can borrow up to 95% LVR with LMI and/or mortgage repayment insurance, or 80% LVR without.
  • Redraw facility. A fee-free redraw facility allows you to access additional repayments you’ve made towards your loan.
  • Offset account. The Teachers Mutual Bank Interest-Only Home Loan comes with a 100% offset account, which allows you to minimise interest costs over the life of the loan.
  • Loan split. With this loan, you have the choice of splitting your loan, which allows you to fix part of your repayments.
  • Repayment pause. If you experience a change in your situation or financial hardship, the repayment pause feature can give you time to get your finances in order without having to worry about periodic repayments.
  • Repayment type. With the Teachers Mutual Bank Interest-Only Home Loan, you can make interest-only repayments.
  • Portability. The portability feature allows you to take your home loan with you in the event that you move houses.
  • Accessibility. You can access your mortgage account 24/7 via internet, mobile and phone banking, which is handy when you’re on the move.

Fees

Fees you can avoid

  • No monthly fees. $0. With the Teachers Mutual Bank Interest-Only Home Loan, you won’t have to worry about ongoing monthly fees, so you can focus on meeting your repayments.
  • Rewards package fee. $0. There is no rewards package fee for this product.

Fees you can’t avoid

  • Establishment fee. $600. You’ll need to pay the $600 establishment fee when you set up your loan.
  • Settlement attendance fee. $150. Teachers Mutual Bank charges a settlement attendance fee for this loan.
  • Valuation and administration fee. $250. This fee applies if you need any additional valuation or administration to set up your loan.
  • Top-up fee. $300. You’ll need to pay a top-up fee if you’d like to apply for a loan increase.

How to apply for the Teachers Mutual Bank Interest-Only Home Loan

If you’d like to find out more about the Teachers Mutual Bank Interest-Only 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.

You’ll need to offer the following information:

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

The Teachers Mutual Bank Interest-Only Home Loan offers a low interest rate of 5.11% p.a. combined with useful features such as a 100% offset account, a portability feature and a split loan option. This home loan is suited to an owner-occupied purchase, vacant land and renovations.

Before you apply for this home loan, compare different home loans on the market to ensure that it satisfies your borrowing needs.

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

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This page was last modified on 5 May 2016 at 12:52.

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Teachers Mutual Bank Interest Only Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $600 / $0

  • Max LVR

    80%

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