Credit Union SA Discounted Home Loan - Construction - Variable

Ratings

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About this rate option

Credit Union SA's Discounted Home Loan rate option for building a new home carries a variable interest rate of 7.04% (comparison rate 7.07%), meaning the rate can move when the lender changes its rates. Repayments are principal and interest, reducing the loan balance over time. You can borrow up to 97% of the property value with a deposit of at least 3%, though deposits under 20% usually attract Lenders Mortgage Insurance. The loan has no monthly or annual fees and allows unlimited fee-free additional repayments.

This summary was generated from Credit Union SA’s published product data for this specific rate option. Always confirm current rates with the lender.

About Discounted Home Loan

Key Features

While it does not have the convenient that comes with an offset account, but $Discounted Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.

Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.

LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.

Fees & Costs

Credit Union SA charge a discharge fee of $350, which covers the cost for removing the mortgage that has been registered on the title of your property.
Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.
There is upfront costs of $300 to apply for Discounted Home Loan, with no ongoing account keeping fees.

Borrowing Limits

Credit Union SA Discounted Home Loan does not offer tier pricing for lower LVR. With Discounted Home Loan, you can borrow upto $80% LVR.
Credit Union SA Discounted Home Loan does not offer tier pricing for lower LVR. With Discounted Home Loan, you can borrow upto $97% LVR.

Eligibility

Interest only repayment option is not available with Credit Union SA Discounted Home Loan for buying next home.
Interest only repayment option is not available with Credit Union SA Discounted Home Loan for construction loan.
Interest only repayment option is not available with Credit Union SA Discounted Home Loan for first home buyer.
Interest only repayment option is not available with Credit Union SA Discounted Home Loan for refinance.

💡 Tip: To get approved for an interest only home loan you need to have a strong enough income to afford principal and interest (P&I) repayments once your interest only term expires. Sometimes extending your interest only period can be tough and getting approved for a P&I refinance is a lot easier.

IMPORTANT:Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Credit Union SA or a mortgage broker just to be sure. This information should be used as a guide only.

Other rate options for Discounted Home Loan

Refinance Variable · Principal & Interest 0 Years · 97% LVR

7.04%

Investment Variable · Interest Only 0 Years · Any LVR

7.54%

Construction Variable · Principal & Interest 0 Years · 97% LVR

7.04%

Owner Occupied Variable · Interest Only 0 Years · Any LVR

7.84%

First Home Buyer Variable · Principal & Interest 0 Years · 97% LVR

7.04%

Frequently Asked Questions

Are there costs when I exit or refinance to another lender?

Credit Union SA charge a discharge fee of $350, which covers the cost for removing the mortgage that has been registered on the title of your property.

Does Credit Union SA Discounted Home Loan comes with an offset account?

No, Discounted Home Loan does not come with an offset account. Generally speaking, variable home loans without offset accounts are often called basic or 'no-frills' loans, you get lower account-keeping fees and lower interest rate for your home loan. In some cases a basic home loan can actually be cost efficient than a 100% offset account.

Does Credit Union SA Discounted Home Loan comes with an offset account?

No, Discounted Home Loan does not come with an offset account. While it does not have the convenient that comes with an offset account, but $Discounted Home Loan comes with a redraw facility. A redraw facility works similar to an offset account. If you put the same amount into home loan as extra repayments, your interest bill will reduce by the same amount, but still have access those extra funds if you need them later.

What are the costs to apply for Credit Union SA Discounted Home Loan?

There is upfront costs of $300 to apply for Discounted Home Loan, with no ongoing account keeping fees. Settlement fee: $300

Fees

Application fee

Important Information

Lenders change their policy from time to time so this information is current only accurate at the time that it was written. You should always check with Credit Union SA or a mortgage broker just to be sure. This information should be used as a guide only.