Teachers Mutual Bank Interest Only Home Loan Review

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 4.49% 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.

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Review by

Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).

Expert review

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%.

About this loan

What are the features and benefits 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.

What fees and charges come with this loan?

  • 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.
  • Establishment fee. $600. You'll need to pay the $600 establishment fee when you set up your loan.
  • Settlement attendance fee. $0. 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

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 4.49% 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.

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