+ Many home loan products have no ongoing or annual fees.
+ Many products offer fee-free extra repayments and redraw facilities.
+Some products may be more competitive than major banks and lenders.
x Some products have higher than average upfront fees.
x Not available to borrowers who do not meet the membership criteria.
x Access to fewer branches than bigger banks.
Membership is open to citizens or permanent residents of Australia who are current or retired employees in the Australian health sector or their family members. Joining the Firefighters Mutual Bank, Teachers Mutual Bank and UniBank, the Teachers Mutual Bank Limited has over 220,000 members and over $8 billion in assets collectively.
Having earned the title of one of the World’s Most Ethical Companies, the mutual bank does not invest in harmful industries like alcohol, armaments, gambling, tobacco and fossil fuels.
The no frills option, this loan offers unlimited additional repayments and a fee-free redraw facility. Additional features include no penalty for early repayment of the loan, no monthly fees and no minimum redraw.
Suitable for loan amounts over $150,000, up to 95% of the property value including Lenders Mortgage Insurance, this variable home loan offers a discounted rate and is only available to eligible members through the Rewards Package for owner-occupiers. Additional features include an offset facility, interest only repayments, and the ability to refinance. This product does not attract penalties for early repayment of the loan, monthly fees or fees for using the redraw facility.
Borrowers can lock in the interest rate for up to five years, helpful for those on a strict budget. Additional features include a 100% mortgage offset, no annual or ongoing fees, and the ability to split loan.
Ideal for construction purposes, this interest only variable loan can be used for owner occupied, vacant land, renovations, or any acceptable purpose. This loan features the ability to pause prepayment and to borrow up to 95% of the property value including Lenders Mortgage Insurance. Additional features include a 100% Offset facility, no monthly fees, a fee free redraw facility and the ability to split the loan.
Available for owner occupied, vacant land, renovations, or any worthwhile purpose this this flexible variable home loan is made to suit changing needs, featuring flexible repayments, the ability to make unlimited additional repayments, repayment pauses, and the ability to split the loan. Additional features include no ongoing fees or penalties for early repayment of the loan. Borrowers can borrow up to 95% of the property value including Lenders Mortgage Insurance.
To become a member, borrowers must meet the membership eligibility criteria. This includes being a citizen or permanent resident of Australia and a current or retired employee in the Australian health sector or a family member of a bank member, and:
As a customer owned bank, the Health Professionals Bank is beholden to the Customer Owned Banking Code of Practice. The Code is an important public statement of the value placed on improving the financial wellbeing of members and the healthcare community and reinforces the commitment to:
As an Authorised Deposit Taking Institution (ADI)*, the bank is regulated under and complies with the:
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.