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Teachers Mutual Bank Home Loan Review

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Home Loan Experts’ Review:
four star4out of5stars

Founded: 1966

Owned by: Customer-owned

Funded by: Retail deposits and wholesale capital markets

LMI Provider: Genworth

Lender type: Mutual Bank, Customer Owned

Teachers Mutual Bank (TMB) is a customer-owned lender that focuses on the education sector. They have low interest rates and occasional special offers which beat the major banks.

The main problems are that not everyone is eligible to join and they’re not able to service other customer types well, such as business owners.

Don’t assume because you’re a teacher that TMB will offer you the best deal around. Often other lenders have special discounts which beat industry lenders like TMB.

How do Teachers Mutual Bank’s home loans compare?

They’re great at

But they’ve got some drawbacks…

  • If you aren’t in the education sector, you can’t be a member!
  • Other banks tend to offer better interest rates for larger home loans
  • They don’t have a business banking division, and don’t often work with self-employed borrowers
  • They’re unlikely to help if you have a bad credit history
  • They don’t have a large branch network

Our award-winning brokers get tough loans approved

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Who is qualified to join TMB?

You can join Teachers Mutual Bank if you’re a family member of an existing member or you work in the education sector.
Eligible education employees include:

  • Full time, Part time, Casual or Contract employees
  • Teachers and other education sector staff
  • Studying Education at University
  • Preschool
  • School Staff including Government & Private Schools
  • TAFE Employees
  • University Staff

Eligible family members include:

  • Brother
  • Sister
  • Child
  • Parent
  • Grandchild
  • Grandparent
  • Spouse

You’d be surprised to find that most people have a family member in the education sector. Unfortunately if you have Aunts and Uncles that are members you can’t consider them to be family for the purposes of joining TMB.

What home loans types do they have?

TMB has a range of variable rate home loans including their Classic Home Loan which is a basic loan with a low rate and their Solutions Plus Home Loan which is a professional package with bigger discounts for larger loans.

However TMB tends to be most competitive with their fixed rate home loans. Their Fixed Options Home Loan often has the lowest rate on the market and is a good choice if you want the security of locking in your interest rate.

If you’re choosing a variable rate, then in most cases other lenders are comparable to or better than TMB.

Teachers Mutual client story: Dean & Anne, NSW

Goal

Situation

Refinance, equity cash out, gifted deposit.

Background

Dean and Anne wanted to give their kids a headstart in the property market.

Over the past 20 years, their home had grown considerably in value so they decided to cash out some equity to as a gifted deposit.

Solution

Both Dean and his wife were full time permanents and were earning strong incomes with no debt except for their mortgage.

They were also refinancing at just over 11% of the property value (LVR), which is considered very low with all lenders.

As strong customers, they were able to refinance their mortgage and cash out $180,000 for their children.

Compare TMB to other lenders

Not sure which lender is right for you? Our Home Loan Experts can help!

Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.