Key features:
The Variable Home Loan is available for amounts over $250,000 for a term of up to 30 years and you can borrow up to 95% of the property’s value. While the home loan has an incredibly low rate of 4.20% and no ongoing fees, keep in mind there are upfront fees of $600 ($365 legal fee and $242 valuation fee) when you take out the loan.
Illawarra Credit Union offers a range of flexible features available. You can choose your repayment cycle either weekly, fortnightly or monthly, plus you can select the standard interest and principal repayments or if you want to free up some extra cash you can choose to make interest only repayments.
The Variable Home Loan comes with the option of making additional or lump sum payments on your loan through the attached extra repayments facility and also comes with a redraw facility if you would like to draw on that amount later down the track (minimum redraw of $500).
Another option available to you is stashing your cash in an 100% offset account with $0 account keeping fees. The best part is if you pay off your loan early due to all this flexibility you won’t be charged any fees for paying out the loan early, however you will be charged the standard $250 discharge fee.
There’s also a top up feature available if you need to use your equity later on to borrow more and pay for things like a home renovation or a new family car. And if you take out your home and contents insurance through Illawarra Credit Union you’ll score 10% off your premium in the first year.
Who it's good for:
Illawarra Credit Union’s Variable Home Loan is suited to both investors and owner occupiers looking for a competitive home loan deal with a low variable rate, no ongoing fees and flexible features to boot.
Any catches?
While the Variable Home Loan comes with an enticing 4.20% interest rate, make sure you keep an eye on the market to ensure you are always signed up with a competitive deal, as variable rate loans can change at any time.
