Greater Building Society Best 1-Year Fixed Loan - Mortgage of the Year Awards 2012

Mortgage of the Year Awards 2012

Greater Building Society (Greater BS) took this year’s Best 1-Year Fixed Loan title in the Building Society or Credit Union category, thanks to the extremely competitive interest rate of 6.2% (6.43% comparison rate for its Great Rate Fixed Rate Loan.

Top honours are bestowed to this loan for its low $500 start up fee, $0 monthly account fees, and high LVR of 95% to borrowers who take out LMI. An 80% LVR is available to borrowers who don’t want to pay the LMI premium. The minimum loan amount is $40,000 with the maximum amount being open for negotiation.

Interest only and principal and interest options are available. Portability, loan splitting and a partial offset account are also allowed, as is the option to use the loan for the purchase of vacant land. However, unlike the other two winners in this category, you cannot use this loan for construction. Internet and over the counter banking (OTC) are available, but OTC transactions incur a $20 fee.

Adding to the loans attraction is the free unlimited redraw facility, and the option to pay off more than the minimum repayments at no added cost, up to 5% of the principal amount of the loan, after which you may incur a fee. You may choose to satisfy your repayments on a weekly, fortnightly or monthly basis.

The Greater BS has also claimed the silver award is for its Ultimate Fixed Rate Home Loan. At the time of writing, the interest rate was 6.15% (6.54% comparison rate).

Like the Great Rate Fixed Rate Loan, the minimum loan amount is $40,000 and the maximum LVR is 95%. It also has a low $500 start up fee. Unlike the Great Rate, it incurs an ongoing fee of $325 per year, and a construction loan and fully offset account are available. Repayment is by PI only.

Taking out the bronze award is the 1-Year Premium Fixed home loan by CUA, offering a 6.19% fixed rate (6.68% comparison rate) and eligible for a CUA loyalty discount after three years.  

The CUA loan incurs a slightly higher $795 total start-up charge, but also has no ongoing monthly fees. Additionally, it offers very flexible loan options such as portability, a split facility, IO/PI repayments and a low minimum loan amount of $10,000.