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Owner Occupied P&I 3-Year Fixed Home Loan 4.99% (CR 6.30%) LVR <90% + Fees @ Capriconian

50

This comparison rate is based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Additional repayments up to $10,000 without penalty in any twelve (12) month period. Applicable to fixed rate loans only.
At conclusion of the fixed rate period, the loan converts to the Premium Choice Home Loan Variable Rate applicable to the loan amount at funding.

https://www.capricornian.com.au/app/uploads/2022/04/Schedule…

No monthly/annual fee.
$600 Mortgage Application Fee (Includes one valuation up to the cost of $300 - Excludes additional valuation costs and solicitor’s costs to prepare mortgage documents and settlement fees.)
Legal Fees - Unknown
Settlement Fees - Unknown
$150 Mortgage Discharge Fee

DYOR on Comparison Rate / Fees and charges ;
Consider pros/cons of fixing towards possible end of rate hiking cycle stage if you believe so.

Background
We’re a credit union. This means our profits are reinvested into creating better financial products and services for our members. Unlike a bank, our profits are not sent to external shareholders, but instead are reinvested back into your community.
We’ve been supporting people living in this region for over 60 years. Community owned since 1959.
The Capricornian has evolved from a small parish credit union established in a suburb of Rockhampton in 1959 into a full service financial institution with eight branches covering Central Queensland.
Our roots stem from a group of committed residents in Park Avenue, Rockhampton who worked to establish a financial society that would benefit the people in the local area. Strong emphasis was placed on the basic principle of co-operation which is the hallmark of Credit Unions. By saving together and pooling funds, they could lend back to one another at interest rates all could afford.
This led to the establishment of the Park Avenue Parish Credit Co-operative Society Ltd which grew and changed its name to Park Avenue Community Credit Union Ltd in 1969. A strong loyal membership base was established and the Credit Union grew to operate from a humble premises and to employ one full time staff member.
In 1979 we opened membership up to all people in Central Queensland, and not just Park Avenue residents. This led to significant growth and in 1981 amalgamated with North Rockhampton Credit Union Ltd and changed our name to Capricornia Credit Union Ltd.
The following years saw steady growth and the introduction of several new products and services inline with technological advances such as the roll out of ATMs, Online Banking, quick deposit facilities, insurance, bonds, investment shares and a financial planning service.
Reflecting this growth, in 2009 we changed our name to The Capricornian Ltd to help engage people who do not fully understand the full services of a credit union.
AFSL/Australian Credit Licence 246780 | BSB 813 049

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The Capricornian
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closed Comments

  • +1

    Never heard of this company.

  • is it normal to have that much gap between rate and CR ?
    or is that alarm bells?

    • +3

      Comparison rates generally arent super helpful however, such a big gap could indicate that the fees and charges of this product are quite high.

      • +2

        time to open PDS I guess for this

        • +6

          A quick gander shows $600 application fee for above 80%LVR and $10/month ongoing fees. Due to comparison rates being calcuated on a mere $150k loan size, these fees make the comparison rate jump up. On a much larger loan size the impact of the fees is not so great.

          Never heard of this lender though so I would be doing a TONNE of research before considering it if I were considering refinancing.

          • @Alistair79: I think no ongoing/monthly fees for this product.

            That $10/m is for Mortgage Plus HL?

            • @dcep: See - this is what I don't understand.
              In order for there to be a large gap between the headline rate and the CR there must be significant fees - but this claims no ongoing monthly fees.
              I wonder if the reason is because it reverts to a variable rate at the end of the term and that is what pushes it out???

              • +1

                @Almost Banned: 3 years at 4.99%

                Remaining 22 years at whatever variable rates after initial 3 years.

                • @dcep: Yeah - that's what I'm thinking is throwing out the CR

    • +2

      Loan size CR
      $150,000 6.30%
      $200,000 5.97%
      $250,000 5.78%
      $300,000 5.65%
      $350,000 5.55%
      $400,000 5.48%
      $450,000 5.43%
      $500,000 5.38%
      $550,000 5.35%
      $600,000 5.32%
      $650,000 5.29%
      $700,000 5.27%
      $750,000 5.25%
      $800,000 5.24%
      $850,000 5.22%
      $900,000 5.21%
      $950,000 5.20%
      $1,000,000 5.19%

  • -5

    So 6.3% is the REAL rate for the borrowers

    This looks worse than click bait

    And who gets loan for 150k to base the $10 fee on this amount

    • +4

      You might want to educate yourself on what is comparison rate.

      First 3 years at 4.99%

      Remaining 22 years at whatever variable rates after initial 3 years.

      No transparency on calculating Comparison Rates (same goes to any other lenders), so can't comment any further.

      • -2

        So can u educate me as what is this 6.3%

    • -3

      This is also how I read it, 6.3% is the real rate (4.99% plus all fees)for the first 3 years.

      • +2

        Comparison rate != "real rate". The comparison rate has almost no basis in reality in the current market, it is calculated based on a $150000 home loan with a 25 year term lol.

        • The CR really does need to be increased to a more reasonable loan amount, 300k or so, however it's still very applicable. Because it's a fixed amount, and a fixed duration it does let you quickly compare fees between lenders.

          A larger gap between rate and CR means higher fees. Now if those fees matter, is a different story.

  • +1

    Their variable rate is 6.75% on a $150k loan. The CR is worked on you paying this for 22 years, after your 3 years of 4.99%.

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