Northern Inland Credit Union introduces a Capped Rate Home Loan

In today’s rising interest rate market it is difficult to know whether to fix your home loan interest rate or leave it variable.

What if there was another option that allows you to guarantee your interest rate will not rise above a certain level, but at the same time still get the advantage if interest rates drop?

Wayne Hoppe, credit manager at Northern Inland Credit Union (NICU) said now there is that option.

“We are introducing Northern Inland Credit Union’s Capped Home Loan. Your interest rate remains variable, but it is guaranteed not to rise above a set interest rate for a three year period,” Wayne said.

“While fixed rate home loans give you the certainty against rising interest rates, you are locked into that rate for the term of the fixed rate period.

“If interest rates start to reduce you may find yourself paying a higher interest rate than what is available. With our Capped Home Loan, if the cash reference rate reduces, then the interest rate on the Capped Home Loan also reduces to reflect our Dream Home Loan variable interest rate. It is the best of both worlds.”

Home owners and investors took advantage of record low interest rates over the previous two to five years by fixing their mortgages.

“The majority of borrowers only lock in a rate for three or five years. Over the next 12-24 month period many mortgage holders will be coming off those very low fixed rates and will have to consider their options moving forward.

Wayne said with so many people coming off record low fixed rates, now is a very important time to reassess.

“Another great advantage about the Capped Home Loan is that there are no break costs if your circumstances change. Fixed rate home loan break costs can be substantial when interest rates start to fall. With the Capped Home Loan there are no interest rate break costs,” Wayne said.

“NICU’s Capped Home Loan also has all the features you expect including unlimited extra loan repayments and the ability to have up to seven 100 per cent offset accounts.

“You will not need to deal with an inexperienced call centre or loan sales person – our home loan specialists each have over 20 years’ experience in assisting customers to purchase or refinance their homes.”

The Capped Home Loan starts at a minimum loan amount of $150,000 and is available to both home buyers and investors. If you are an investor you will often see that the rates many banks offer is higher than if it is for an owner occupied home loan.

At NICU, the interest rate is the same competitive rate whether you are borrowing for an investment or your own home.

Narrabri branch manager Joe Morley suggests if you are looking for a loan which provides certainty that your loan repayments will not rise above a set level for three years, yet will reduce if interest rates fall, then speak to the team about the Capped Home Loan.

“We look forward to helping you with your home loan,” said Joe.

The Capped Home Loan is offered by Northern Inland Credit Union ABN 36 087 650 422, Australian Credit Licence 235022, AFSL 235022.

For more information and full terms and conditions, visit www.nicu.com.au or contact 02 6763 5111.