+ They sometimes offer more competitive rates than the major banks.
+ They are certified responsible investors, giving peace of mind to borrowers.
+ They rate highly for customer satisfaction.
x They are not available to the wider community.
x They have limited banking networks.
x They may not represent the best possible terms and conditions for all members circumstances.
Completely owned by its members, this mutual bank is tasked with helping members make the most of their money across each stage of their financial journey, offering a broad range of life cycle specific products to reflect this. The bank scored a healthy 92 percent for member satisfaction in 2019 and are Certified Responsible Investors meaning they do not invest in harmful industries including alcohol, armaments, gambling, tobacco and fossil fuels.
Enjoy the assurance of knowing exactly what your home loan repayment will be with the ability to lock in an interest rate for up to five years. Additional features include no ongoing or annual fees, a 100% mortgage offset, the ability to split the loan. Eligible borrowers can borrow up to 95% of the property value.
Access a loan for up to 80% of the property value with this variable home loan. Additional features include unlimited additional repayments with no penalty for early repayment for paying off the loan sooner, no monthly fees, and a fee free redraw facility to access additional repayments you’ve made.
Ideal for owner occupied purchase, vacant land and renovations, this interest only variable loan can be used for owner occupied, vacant land, renovations, or any acceptable purpose. You can borrow up to 95% of the property value including Lenders Mortgage Insurance. Additional features include an 100% offset facility, no monthly fees, a fee free redraw facility and the ability to split the loan.
With a variety of features, this flexible variable interest rate home loan is designed to suit changing needs, and can be used for owner occupied, vacant land, renovations, or any worthwhile purpose. Features and benefits include the ability to make unlimited additional repayments without penalty for early repayment and pause repayments. It has no ongoing fees and a 100% Offset facility with fee free redraw facility.
Offering a discounted rate, this variable home loan is only available to eligible members. This product is part of their Rewards Package for owner-occupiers, which provides several benefits and discounts to compliment your home loan. Borrowers can access up to 95% of the property value including Lenders Mortgage Insurance (80% without.) Additional features include no monthly fees and fee free redraw facilities, a 100% Offset facility and the ability to split the loan.
Things to Consider with Firefighters Mutual Bank Refinancing
You will need to become a member to access any Firefighters Mutual Bank home loan product. This is a simple process requiring proof of Australian citizenship or permanent residency and that you are 18 years old or over. You will also need to become a shareholder to joinall you need to do is pay just $10.
Membership does mean you are not just a customer, you are a shareholder who benefits from profits through competitive rates and low fees.
All Firefighters Mutual Bank new mortgage and savings account products are Certified Responsible Investments certified by the Responsible Investment Association Australasia (RIAA.) Retail mortgages and deposits certified by RIAA comply with strict operational and disclosure practices required under the Responsible Investment Certification Program.
Refinancing is when you take out a new mortgage in order to pay off an existing loan. This often occurs due to a change in financial situation, or because you want to secure a better deal on your mortgage. This can be facilitated with the same lender, or involve switching to a new mortgage provider.
There is a range of benefits to refinancing your home loan. It can allow you to take advantage of a better home loan deal, unlock equity in your home, reduce the fees you pay, simplify your repayments (especially if you’re consolidating multiple debts) and even shorten the term of your mortgage therefore reducing your interest payments.
How long you need to wait before refinancing depends on your mortgage provider. Some allow you to do so immediately after closing, while others have a waiting period of six months or longer. It’s best to check with your lender to determine their specific requirements.
Some common costs of refinancing include application fees, valuation fees, registration fees and discharge of mortgage fees.
The first place to start with refinancing is to assess your current financial situation to ensure it’s the right choice for you. Then, you generally start by contacting your existing lender to see whether they can improve your current home loan deal. If they are unable to provide an alternative, you would then work with a broker to compare other home loans on the market. If you find a better option, you would apply for your new mortgage and exit your old one.
There are a few risks involved in refinancing your home. One of these is that if you apply for a fixed rate loan, sometimes this rate can actually fluctuate in the period between approval and settlement. This would mean you may not have actually locked in a better rate which is why it’s important to check you’re getting a home loan with a rate lock feature. Other risks involve getting locked into a longer mortgage term (therefore increasing your interest repayments) and being tricked by tempting introductory variable or honeymoon’ rates.
There’s no hard and fast rule as to how much refinancing can save you: this depends on your unique financial situation, as well as the difference between your old and new interest rate. However, data shows that when your interest rate drops by 2% or more, this could save you up to $20,000 over the course of your mortgage.