Nila Sweeney


Your Mortgage Gold AwardsMortgage of the Year Awards 2012

Taking home the gold for the second year in a row in the line of credit category for building societies and credit unions is the Newcastle Permanent Building Society. Its Premium Plus Line Of Credit Tier 1 Loan has taken top place thanks in part to its low interest rate of 6.56% (6.73% comparison rate). This is 0.75%pa below its Real Equity Line of Credit interest rate.

Entry into this LOC loan is made easy with no start-up costs and no minimum loan amount for a limited time (usually it is a low $5,000). The loan term can be anywhere from one to 30 years and the maximum LVR available on this product is 90% with LVR, or 80% without.

Further handy options include portability ($350 fee), a split facility and a comprehensive range of ways to access your money. As is the case with packages, there is an annual fee ($350), but free redraws and repayments are allowed; and because your loan is a line of credit, you have 24 hour access to your funds (up to your approved credit limit). There are also no set repayments provided you keep under your approved credit limit. Bear in mind however, that this loan is only available for sums less than $500,000.

Taking out second spot with a 6.89% interest rate and an extremely tight comparison rate of 6.91% is IMB Ltd with its LOC - Professionals Mortgage Equity Line loan. Like the Newcastle Permanent loan, this loan allows portability and a split facility (free for the first three splits, but $100 thereafter). It also has a maximum LVR 90% with LMI, 80% without.  

Again, the IMB LOC loan does have start-up fees, but this is balanced out by $0 ongoing account fees. The minimum loan amount is a lot higher than Newcastle Permanent’s- being $200,000- but the maximum amount is up to a total of $1m. The loan term can be anywhere between 10 and 40 years.

In Bronze position for 2012 is CUA with its Mortgage Freedom LOC loan. This loan has 6.97% (and a close comparison rate of 7.01%). As with all the LOC loan winners there are start up fees for this loan, but there are no ongoing fees.  The LVR rates are up to LVR 90% with LMI, or up to 80% without LMI and the minimum loan amount is $250,000.  

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan