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 5.86% 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.
| Product Name | Teachers Mutual Bank Interest Only Home Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $25,000 |
| Maximum Loan Amount | $5,000,000 |
| Minimum Loan Term | 0.5 years |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 95% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | Yes |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Fixed Interest Option | No |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Interest 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 5.86% 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.
