Teachers Mutual Bank home loans up for grabs under the FHLDS

By Olivia Gee · · 3 min read
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Teachers Mutual Bank has announced it will be participating in the second release of the First Home Loan Deposit Scheme (FHLDS), with applications opening today.

If you’re considering purchasing your first slice of the property pie in Australia this new financial year, the FHLDS could get you on track sooner. The scheme allows first home buyers with a deposit under 20% of a property’s value to avoid costly Lenders Mortgage Insurance (LMI). This is done by the government guaranteeing the remainder of the deposit, covering the lender in the case of loan default.

It’ll allow prospective borrowers to affordably access home loan options from Teachers Mutual Bank, including its Fixed Option Home Loan for owner-occupiers paying off principal and interest. This rate sits at a pretty 2.19% p.a. (at the time of writing) for fixed one, two and three-year terms, although it does have a reasonably high revert rate of 4.37% p.a. once your term is up.

Fixed home loan rates under 2%

While the Teachers Mutual rate sits on the lower end of the spectrum for two and three-year fixed rates in Mozo’s database, there are a few other options that have pipped it to the post.

Bank Australia is currently leading the charge with their Clean Energy Fixed Home Loan (Fixed, Package). The two and three-year fixed options only see 1.84% p.a. interest charged with an LVR of 80%, and a revert rate of 3.13% p.a.

Bank of us has also just scraped in under the ‘2’ mark for two and three-year terms, offering an interest rate of 1.99% p.a. (reverting to 2.83% p.a.) with its FlexiDiscount Home Loan (Fixed). There are also a fair few other options hovering just above 2%, including offerings from Homestar, HSBC, bdc, Credit Union SA and more. 

So if you are interested in taking out a home loan, make sure you shop around and check out more options below.

Compare home loans - last updated 4 December 2023

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  • Offset Home Loan

    Package, Owner Occupier, LVR<60%, Principal & Interest

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    Initial monthly repayment
    6.14% p.a. variable
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    Ability to open up to 10 offset accounts per loan account. Fast online application. Linked Debit Mastercard® with fee-free access at ATMs across Australia. Package a credit card with your home loan and the annual card fee will be waived (T&Cs apply). 40% deposit required.

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    Variable Rate Home Loan Special Offer

    Package, Owner Occupier, Principal & Interest, LVR<80%

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    6.14% p.a. variable
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    Package benefits across Home Loans, Visa Credit Card, Personal Loans and Term Deposits. No package fee for the first year. No application, settlement or redraw fees to pay. Quick and easy application. Free CoreLogic RP Data property reports. *Terms, conditions and lending criteria apply.

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    Initial monthly repayment
    6.14% p.a. variable
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* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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