Teachers Mutual Bank Home Loan

About Teachers Mutual Bank Home Loan

Teachers Mutual Bank Limited stands as one of Australia's largest mutual banks, boasting over 200,000 members and assets exceeding $8 billion. Established in 1966, the bank has offered a range of home loan products, supporting teachers for over 50 years.

As the name implies, Teachers Mutual Bank home loans are specifically designed for teachers who are employees in the Australian education sector or for individuals who are family members of the bank's members (i.e., shareholders). Namely, if you are a current or retired employee in the education sector or a relative of such individuals, you can easily access their services.

Urban Money has compiled all the information you need in one place to assist you on your homeownership journey. Hereunder, we will discuss factors such as Teachers Mutual Bank home loan rates, features, pros and cons, eligibility criteria, the application process, and document requirements. You can also find some tips from our home loan advisors, which will aid you to expedite and enhance your chances of approval.

Pros and Cons of Teachers Mutual Bank Home Loan

Pros

• Competitive interest rates and low fees
• Both fixed and variable rates are available
• Flexible repayment options
• 100% offset facility
• Redraw facility

Cons

• Strict eligibility criteria
• You may need a larger deposit or equity
• They do not have a large branch network

 

Features of a Teachers Mutual Bank Home Loan

Following are the key features of Teachers Mutual Bank home loans.

Appealing Interest Rate

Teachers Mutual Bank home loan rates are exceptionally low, among the best in the market. The variable rate commences at 5.64% p.a., and the comparison rate is 5.70% p.a. On the other hand, the fixed interest rate stands at 6.04% p.a., with a comparison rate of 5.87% p.a. You can choose fixed or variable rate options, depending on your preference and budget.

Generous Loan Amount

You can access a maximum Loan-to-Value Ratio (LVR) of 95% of the property's value. This generous loan amount ensures that you can secure the fund that meets your financial requirements, regardless of how big your financial objective is. However, it's important to note that the specific loan amount you qualify for will depend on various factors, including your eligibility criteria, income, creditworthiness, loan type, and other relevant considerations.

Flexible Repayment Terms

You can choose a maximum loan tenure of 30 years for a Teachers Mutual Bank home loan, allowing you to select a repayment period that suits your financial situation and goals. Notably, this remarkable feature empowers you to adjust your loan EMIs with utmost flexibility, thus enabling you to mitigate the likelihood of default.

Unlimited Offset Facility

You can access a 100% offset facility, a savings account linked to your home loan account. By doing so, the balance in your offset account works to offset or deduct from the outstanding balance of your loan when calculating the interest payable. Hence, the more money you keep in your offset account, the less interest you'll owe on your loan, potentially resulting in substantial interest savings over time.

Seamless Loan Transfer

You can use the portability feature to transfer your loan to a new property without having to apply for a new loan. However, this transfer is subject to approval and specific conditions set by the lender. It offers you the flexibility to carry your existing loan to a new home, streamlining the process and potentially saving you time and paperwork.

Completely Digital

The entire loan process for an Auswide Bank home loan can be seamlessly completed online/digitally. I.e., you can ultimately eliminate yourself from the hassle of visiting a bank branch, filling out physical forms, submitting documents, and so on. Instead, you can leverage the user-friendly digital platform of Teachers Mutual Bank home loan, making it easily accessible to customers.

Benefits and Drawbacks of Teachers Mutual Bank Home Loan

Benefits

• You can enjoy special interest rates and discounts if you are in the education sector or an essential worker.
• You can make unlimited additional repayments on variable loans, and up to $10k per anniversary year on fixed-rate loans. This ultimately empowers you to pay off your loan faster and save on interest costs.
• You can borrow up to 95% of the property value, including Lenders Mortgage Insurance or up to 98% of the property value for loans under the Home Guarantee Scheme.
• You can use the portability feature to transfer your loan to a new property without applying for a new loan, subject to approval and conditions.

Drawbacks

• You may have to pay a break fee if you pay off or refinance a fixed-rate loan during the fixed-rate period, which can be costly depending on the market conditions and the remaining term of your loan.
• You may not get the best interest rates for larger home loans compared to other banks or lenders who may offer bigger discounts or lower fees.
• You may have difficulty finding a branch near you, as Teachers Mutual Bank has a limited branch network across Australia.

Eligibility Criteria

You can apply for a Teachers Mutual Bank home loan if you meet the following criteria:

• You are 18 years old or above.
• You are a current or retired employee in the education sector or a relation of a member of Teachers Mutual Bank.
• You must have a regular income and a good credit history.
• You must have a minimum loan amount of $150,000 for Basic Variable and $25,000 for Standard Variable.
• You are an Australian citizen or resident.

How to Apply for a Teachers Mutual Bank Home Loan?

To apply for a Teachers Mutual Bank Home Loan, you need to follow these steps:

Step 01: You need to be a member of Teachers Mutual Bank or any of its divisions (Firefighters Mutual Bank, Health Professionals Bank, or UniBank). You can easily join online or by calling 13 12 21.

Step 02: You need to compare the different types of home loans and their features on the Teachers Mutual Bank website. You can also use online calculators to estimate your borrowing power, repayments, and savings.

Step 03: You need to complete an online application and send it to Teachers Mutual Bank with supporting documentation. If you need assistance to complete the application, you can access the customer service provided by the bank.

Step 04: You need to wait for your application's pre-approval (also called conditional approval). This will depend on your income, credit history, property value, and other factors. Your pre-approval will remain valid for up to 90 days, subject to your remaining financial position.

Step 05: You must arrange for a property valuation and meet any other loan conditions. Based on the valuation outcome and other criteria, you will receive your loan's final approval (also called unconditional approval).

Step 06: You need to sign and return the loan contracts and mortgage documents that will be mailed to you or your solicitor. You should read through the contract and support documents carefully and check with your solicitor if you have any questions.

Step 07: Finally, you can celebrate your new home loan and enjoy the benefits of being a Teachers Mutual Bank member.

Documents Required for Teachers Mutual Bank Home Loan

To apply for an Auswide Bank home loan, you are required to submit the following documents along with your application form:

• Proof of identity: Driver's licence, passport or birth certificate.
• Proof of income: Payslips, bank statements, tax returns.
• Proof of address: Utility bills, rental agreement, or council rates notice.
• Proof of Property: A Contract of Sale that shows the details of the property you are buying and your solicitor or conveyancer’s name, address and contact details.
• Proof of Asset and liability: You must provide documents demonstrating your existing assets (such as savings accounts, investments, property, vehicles, investments, savings, etc.) and your liabilities (such as loans, credit cards, overdrafts, etc.).
• Proof of end use: You need to provide a reason for applying for a home loan, such as buying a new property, refinancing an existing loan, renovating your home, etc. You may also need to provide supporting documents such as the contract of sale, transfer documents, construction plans, etc.

Teachers Mutual Bank Home Loan Calculator

Teachers Mutual Bank Home Loan Calculator helps you estimate your monthly repayment and the total interest amount you may need to pay. To use this calculator, you need to enter your desired loan amount, repayment type, payment frequency, loan term, and the applicable interest rate from the bank (the current Teachers Mutual Home loan rates are mentioned below). In a jiffy, the calculator will show the result.

Moreover, you can experiment with different combinations of repayment amounts, frequencies and repayment types to see the impact on your home loan repayments. For instance, you may discover that opting for weekly repayments instead of monthly ones can decrease your overall interest payments, among other possibilities.

Customer Service for Teachers Mutual Bank Home Loan

If you are looking for customer service for Teachers Mutual Bank Home Loan, you have several options to contact them as follows:

• Call their customer service centre at 13 12 21 or +61 2 9735 9111 (overseas) from 8 am to 7 pm on weekdays, or 9 am to 3 pm Saturday. You can also use their phone banking service at 13 21 40 or +61 2 9735 9331 (overseas) anytime.
• Email them at [email protected] or submit an online enquiry form.
• Visit their offices in Sydney, Melbourne, Brisbane, or Perth from 9 am to 5 pm on weekdays. You can find their locations and directions on their website.
• Book an appointment with a lending specialist who can visit you at home, call you on the phone, or speak to you on a video call. You can book online or call them at 13 12 21.
• Visit their official website and find the relevant information about Teachers Mutual Bank home loan rates, repayments, redrawing, top-ups, etc.