People’s Choice Credit Union brings variable rates to new lows
Competition on the home loan front continues to heat up, with People’s Choice Credit Union recently dropping interest rates for its Basic Variable Rate home loan to new lows.
The offering currently sports a variable rate of 2.49% p.a. (2.49% p.a. comparison rate*), which is available to owner occupiers making principal and interest repayments. For comparison, the average variable home loan rate in our database currently sits at 3.36% p.a.
There are no upfront fees and plenty of useful features to help you save on interest, such as the ability to make unlimited extra repayments. You’ll also be able to redraw any extra amounts you’ve repaid on the loan if you feel they’d be better served back in your pocket.
Along with the Basic Variable Rate, PCCU is also offering a number of attractive fixed rate home loans, including the First Home Buyer Fixed Rate Loan (Package). This comes with a 1.99% p.a. 1-year fixed rate (3.91% p.a. comparison rate*), and is available to borrowers who have never previously owned a residential property.
We’ve included an overview of three PCCU home loans below, but for a full list of offerings from the credit union, along with customer ratings and reviews, be sure to visit our PCCU home loans page.
Basic Variable Home Loan (LVR<80%, Owner Occupier, Principal & Interest)
- 2.49% p.a. variable rate (2.49% p.a. comparison rate*)
- Free extra repayments
- Redraw facility available
The PCCU Basic Variable Rate home loan comes with everything you’d want in a no-frill home loan. Repayments can be made weekly, fortnightly or monthly, and borrowers will be able to pay down their loan ahead of schedule without incurring any fees. A redraw facility is also available, in case you need to retrieve those extra repayments at some point down the track (minimum redraw amount is $1,000). As for fees and other charges, they’ve been kept to a minimum, with the main one you’ll have to worry about being the $350 discharge fee.
First Home Buyer Fixed Rate Loan (<80% LVR, Principal & Interest)
- 1.99% p.a. 1-year fixed rate (3.91% p.a. comparison rate*)
- $0 application fee
- Free extra repayments (p to $10,000 per year)
First home buyers gearing up to enter the property market will appreciate this offering from PCCU. Along with the 1.99% p.a. fixed rate (3.91% p.a. comparison rate*) available for one year, there are a number of helpful features, such as the ability to choose your repayment cycle and make free extra repayments up to $10,000 a year. Just keep in mind that once the fixed term is up, the loan will revert to a 3.66% p.a. variable rate. There are also a few fees you’ll need to budget for, namely the $395 yearly service fee and the $350 discharge fee.
Fixed Rate Home Loan (Owner Occupier, Principal & Interest)
- 2.44% p.a. 3-year fixed rate (4.11% p.a. comparison rate*)
- Free extra repayments (up to $10,000 per year)
- Split-loan interest rate option
Locking in a fixed rate can offer certainty around monthly repayments, but with the PCCU Fixed Rate Home Loan that doesn’t mean you’ll have to sacrifice flexibility. When it comes to repayment frequency, you can choose to pay either weekly, fortnightly or monthly. You’ll also be able to make extra repayments without penalty, however this is capped at $10,000 a year. For those hoping to take advantage of both a fixed interest rate and a variable one, there is the option to split your loan between a fixed rate and a variable rate.
Wondering how these offerings from PCCU compare to other home loans on the market? Visit our home loan comparison page, where you’ll be able to filter your search by rate and type.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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