To refinance or not to refinance?
Free up your cash
With the Reserve Bank of Australia slashing interest rates again,
If you’ve been able to build equity in your home loan
more homeowners are wondering whether they are really
refinancing may allow you gain access to these funds. You can
getting the best deal possible with their current home loan.
borrow against this equity to renovate your home or to finance
Refinancing can be hugely beneficial for homeowners allowing
another big-ticket purchase such as an investment property.
them to move with the changes in the market during their 20plus year mortgage.
Home renovations are an increasingly popular reason people
choose to refinance, with figures from the Housing Industry
But while rates and offers can sound great on paper, it pays to
Association estimating that by 2017 Australians will be investing
know the right questions to ask when considering refinancing
$30 billion per year in home improvements.
your home loan. Here are a few reasons it could be the right
time to take a closer look at whether your current loan is right
for you.
As well as lifestyle benefits, home renovations can also have
the additional benefit of increasing the overall value of your
property.
Consolidate your debt
Credit card debt, personal loans, and car loans can all be rolled
A better home loan deal
into a single payment when you consolidate your debt as part
With many home loan rates well below 5% for a 25 year
of refinancing your home loan. This is not only convenient
mortgage, now is a good time to consider if you are getting
(and great for budgeting), but it also means that all of your
the best deal available. It’s also worth considering fixing
repayments will be charged at the more competitive home
part or all of your mortgage to take advantage of these
loan interest rate.
historically low rates.
Did you know you can now get your statements online?
New RailNet Now Live!
Know the costs
It is important to know the fees and charges that you may incur
if you refinance your home loan. Breaking a fixed-rate loan could
mean you will face expensive break fees, and refinancing when you
own less than 20% of your property could see you pay additional
Lender’s Mortgage Insurance. Make sure you find out all the facts
before you decide whether refinancing is the right decision for you.
Get something extra
When you are thinking of refinancing, there is more to consider
than just the interest rate offered. You may have the option to
GOOD NEWS FOR MEMBERS
While the circumstances of
each RBA cash rate decision will
always vary, RCU is pleased to
announce that on this occasion we
will be passing on the full 0.25%
reduction to all our variable home
loan interest rates.
take advantage of account features that you previously did not
have, such as redraw facilities, an offset account or the option
to consolidate your debt. With a RCU home loan you could even
Refinancing made simple
arrange for flexible repayments around the birth of a child or a
Our competitive rates and flexible loan options mean there
holiday, or even structure your repayments so you have access to
has never been a better time to refinance to RCU! Contact
more funds in December for Christmas! Visit wishlist.rcu.com.au
a Loan Specialist today to start building the loan that’s right
to find out more.
for you.
Printed 29/05/2015. Railways Credit Union Ltd ABN 91 087 651 090 AFSL/Australian Credit Licence 234 536. The information in this Newsletter has been prepared without taking into account your
objectives, financial situation or needs. Before making any decisions regarding investments you should seek independent advice regarding its suitability to your needs and circumstances. Railway
Lines is produced for the information of Railways Credit Unionmembers and their families. We welcome articles or items of interest from our members. Simply call (07) 3329 7804.Railways Credit
Union is the issuer of all products mentioned in this Newsletter unless otherwise stated. A Product Disclosure Statement (PDS) for all deposit, non-cash payment or insurance products can be
obtained by contacting the Railways Credit Union on 1300 362 216. You should read the PDS before making any decision to acquire any of these products. The Schedule of Fees & Charges also forms
part of the PDSs. All rates can change without notice. Fees and charges may apply (full terms and conditions available on request).
Current Loan Interest Rates
All rates are per annum
Serving the financial needs of Queensland Rail
& Aurizon employees and their families
HOME LOANS – From 1 June 2015
Annual Rate
Comparison Rate
Economy Home Loan L50
4.40%
4.49%
RCU Wealth Builder Loan L14
4.40%
4.49%
First Home Loan L60
4.40%
4.43%
Home Mortgage Loan L19
4.89%
4.92%
Investment Mortgage Loan L13
4.89%
4.92%
Annual Rate
Comparison Rate
Lockit Home Loan 1 year
4.34%
4.88%
Lockit Home Loan 3 years
4.54%
4.85%
Annual Rate
Comparison Rate
New Car Loan L22
8.89%
9.10%
Any Age Car Loan L12
10.69%
10.91%
Personal Loan L11
13.74%
14.79%
Comparison rates based on a loan of $150,000 for 25 years. Secured by mortgage.
FIXED RATE HOME LOANS – From 27 May 2015
PERSONAL AND CAR LOANS – From 1 March 2015
Comparison rate based on a secured $30,000 loan for 5 years. Secured by Bill of Sale.
Comparison rate based on a secured $30,000 loan for 5 years. Secured by Bill of Sale.
Comparison rate based on unsecured $10,000 loan for 3 years.
OVERDRAFTS – From 1 June 2015
Annual Rate
Tilt… Your All-in-One Mortgage Overdraft S17
5.04%
Tilt… Your Investment Mortgage Overdraft S18
5.04%
Unsecured Overdraft S33
12.29%
When these Accounts are in credit, interest is calculated and paid as per the corresponding Everyday Saver S22.
Minimum overdraft limit is $2,000.
Warning: Comparison rates apply only to the examples given. Different amounts & terms will result in different comparison rates. Costs such as redraw
fees or early repayment fees & costs savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. This
document forms part of the Product Disclosure Statements (PDS) for Standard Savings, Express Saver Accounts, First Home Saver Accounts, and Term
Deposits. A core PDS document contains a product summary & Terms & Conditions for these products. The Schedule of Fees & Charges also forms part of
the PDS for First Home Saver Accounts, and Standard Savings Accounts.
All rates quoted are per annum. These rates can change without notice. Fees, charges, terms and conditions apply (available on request). Applications
for term loans and overdrafts are subject at all times to credit assessment and approval. For up-to-date information on interest and comparison rates
phone us on 1300 362 216 or visit our website at www.railwayscreditunion.com.au. ABN 91 087 651 090 AFSL/ACL 234 536
Current Loan Interest Rates
All rates are per annum
SAVINGS – From 1 June 2015
Note: the interest tier applicable is paid on the entire balance and not just the portion.
Express Saver S50 … top rate with Internet and phone access
3.15%
First Home Saver Account S60
3.15%
Interest calculated on total daily balance and paid monthly.
Interest calculated on total daily balance and paid monthly.
Everyday Saver S1
0.70%
Interest calculated on total minimum monthly balance and
paid monthly.
$50,000 or more
Everyday Saver S22 and S33
0.45%
Interest calculated on the total daily balance and paid
monthly.
$50,000 or more
0.25%
$30,000 to $49,999
0.20%
$30,000 to $49,999
0.05%
$10,000 to $29,999
0.05%
$10,000 to $29,999
0.01%
$0 to $9,999
0.01%
$0 to $9,999
Christmas Saver S8
0.50%
Budget Account S5/Insurance Account S6
0.01%
Interest calculated on the total minimum monthly balance and paid on 31 st October.
Interest calculated on the total minimum monthly balance and paid monthly.
FIXED TERM DEPOSITS – From 27 May 2015
Term
Min $5,000 and above
Interest Paid
3 Months
2.85%
At maturity
4 Months
2.90%
At maturity
5 Months
2.95%
At maturity
6 Months
3.00%
At maturity
7 Months
3.00%
At maturity
8 Months
3.00%
At maturity
9 Months
3.00%
At maturity
10 Months
3.00%
At maturity
11 Months
3.00%
At maturity
12 Months
3.00%
Annually *
13 to 14 Months
3.00%
Annually *
15 to 24 Months
3.10%
Annually *
12 to 14 Months
2.90%
Monthly
15 to 24 Months
3.00%
Monthly
Interest paid annually and at maturity. *For terms longer than 12 months, interest is paid at 12 months and then maturity.
Seen a better rate? If you have seen a better advertised rate from another Bank, Building Society or Credit Union let us know and
we'll see if we can match it! Also, don't forget that it may be possible to negotiate rates for investment amounts in excess of
$500,000.