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Teachers Mutual Bank unveils 98pc LVR construction loan

by Nick Bendel9 minute read
The Adviser

One bank has unveiled an innovative home loan option, while another bank has made what may be the last fixed-rate cut of the year.

Teachers Mutual Bank has expanded its My First Home Loan product by introducing a construction option.

It offers interest-only repayments during construction, up to 98 per cent LVR (with LMI), a 40-year loan term and a 100 per cent offset account.

This new option complements the first home buyer incentives of many states, which only provide assistance for new builds.


Teachers Mutual's national manger of third-party distribution, Mark Middleton, said this product option had been developed in response to broker demand.

"We have seen an increase in demand for a construction loan for this segment of the market, particularly from brokers," Mr Middleton said.

"This product was developed with first home buyers at front of mind. New development sites and government incentives are making construction a very attractive option for these buyers."

Meanwhile, Suncorp Bank has cut 15 basis points from some of its fixed rates.

The bank's three-year fixed rate has fallen to 4.98 per cent, while its three-year interest-in-advance rate has fallen to 4.83 per cent.

[Related: Brokers have made us a better bank, says Teachers Mutual]

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