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Teachers Mutual Bank Car Loan

Find out whether Teachers Mutual Bank is the right place to take out your car loan. Compare a range of offers with Savvy and apply with us today.

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, updated on June 30th, 2023       

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Teachers Mutual Bank, as the name suggests, is an Australian mutual bank and former credit union offering its members a range of financial products, as well as insurance and banking services.

One such product is a car loan, which serves as one of the many available car finance offers available on the market and therefore worth learning more about if you’re in the market for finance for your next car.

Fortunately, Savvy breaks down a range of car loan offers to help you make sure your decision is the right one. We’re partnered with a vast panel of lenders, so you can apply directly to us today and have your ideal car loan locked in within days.

*Please note that Savvy does not represent Teachers Mutual Bank for their car loan product.

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The features and benefits of Teachers Mutual Bank car loans

Rates starting from 4.99% p.a.

Teachers Mutual Bank (TM Bank) offers low rates starting at 4.99% p.a. (5.13% p.a. comparison), ensuring you can capitalise on an affordable car loan from the outset.

Take up to six years to repay your loan

Being able to take the time to repay your car loan is important, as you should always ensure that you’re as comfortable as possible in doing so, and you can choose a loan term up to six years to do this.

No monthly fees

There’s no requirement for you to pay any ongoing fees on top of your monthly repayments and interest, saving you further money over the life of your car loan.

Borrow up to $80,000

You can purchase a wide range of car types across different pricing tiers, with TM Bank car loans starting from $10,000 and reaching up to as much as $80,000.

Fixed interest rates available

By locking your rate in at the beginning of your car loan, you can ensure that your ability to budget around your repayments will be more accurate and reliable.

Apply jointly with your partner

If you want to share the responsibility of your co-purchased vehicle with your partner, you can sign on as joint applicants for your car loan with TM Bank.

The pros and cons of Teachers Mutual Bank car loans

PROS

A diverse range of vehicles available

You don’t just have to buy a standard car with this loan: motorcycles, boats, caravans and even some classic cars are able to be purchased and used as security for the finance deal.

Include extras in your loan

Not only do you not have to supply a deposit but can also include other costs in your loan, such as car insurance and added accessories like a car alarm system or navigation tools.

Buy new or used up to ten years old

Crucially, you can purchase any vehicle, new or used, up to ten years of age at the point of purchase, widening your potential options in terms of cars you can choose from.

CONS

Minimum three-year term

You won’t be able to take out a short-term car loan of one or two years as you can with many other lenders due to the fact that TM Bank car loans are restricted to three-year minimums.

Application fee charged

Although not a hugely substantial charge at $100, you’ll be required to pay an application fee as part of the setup of your loan when you may not be required to with other lenders.

Only open to eligible members

If you aren’t a current or retired employee from the education field or a close family member of one, you won’t be able to access car finance through this institution.

More about Teachers Mutual Bank car loans

What car loan products does Teachers Mutual Bank offer?

There are two different types of car loan offered by TM Bank, so it’s important to know how they differ from one another and which is better suited to your individual needs. These car loan offers are:

  • Fixed rate car loan

This product is the main car loan available and is closest to standard car loan offers on the market. Loans range from three to six years in length and come with a significantly lower interest rate, which is fixed. These loans start from $10,000 and reach as high as $80,000. Vehicles can be purchased up to ten years old at the point of sale and used as collateral for the loan.

  • Variable rate car loan

In contrast, their variable rate car loans start at 8.99% p.a. (9.13% p.a. comparison) and offer a range of other features. Firstly, loans as small as $5,000 can be taken out, with the maximum $80,000 amount still applying, but you can take advantage of free extra payments and no early repayment fees. On top of this, you can access a fee-free redraw facility to withdraw additional payments made across your term.

Of course, you can benefit from applying directly with Savvy. We’re partnered with more than 25 lenders across the country to maximise your chances of finding and securing the ideal offer for your needs with the help of one of our dedicated and experienced consultants. We do the heavy lifting and compare car loans for you, so you don’t have to worry about the process after you submit your initial application to us, with funds able to be released and ownership of your car transferred to you in as little as 48 hours.

Which documents will I need for my loan application?

As with all car loans, you’ll need to provide a set of documents to verify that everything you’ve explained in your application is accurate. While these may differ slightly between different lenders, the broad strokes will remain the same across the board. The information required for a TM Bank car loan includes:

  • Identity documents, such as your driver’s licence
  • Evidence of income via a recent payslip
  • Information about any assets you own and their value, such as property and other vehicles
  • Information about any liabilities, such as outstanding loan or credit card debts
  • Information about your regular expenses, such as regular living costs and utilities and other bills

Common queries about Teachers Mutual Bank car finance

Do I have to be a member to apply for a car loan with Teachers Mutual Bank?

Yes – as part of the application process, you’ll pay a fee of $10 to purchase a share of the bank. Mutual banks and credit unions are member-owned, so you’ll own part of the institution when you sign up to become a member. You won’t be able to take out a car loan if you don’t become a member, so make sure you’re eligible to become a member of the bank.

Is there any difference between bank and credit union car loans?

Not really – credit union car loans and those offered by banks are essentially the same in terms of the products you’re taking out. The main difference is that, in most cases, credit unions and other mutuals can offer lower interest rates and fees due to the fact that their profits are reinvested in the company, rather than used to pay shareholders who own big banks.

Are there restrictions on the car brands that I can buy?

No – as long as your vehicle meets your lender’s requirements in relation to their age and condition, you can choose any make or model of car you wish. This may be anything from Mitsubishi, Honda, Subaru, Suzuki or any other car brand available on the Australian market right now.

Can I take out a car loan with Teachers Mutual Bank if I’m an education student?

No – unfortunately, membership for TM Bank isn’t currently open to teaching students or those in the field of education. You can contact the institution to clarify whether you can be accepted if you’re unsure. However, you can also apply directly with Savvy to speak with one of our consultants about car loans available to students.

How do I work out my car loan repayments?

The most effective way of working out the cost of your loan instalments, such as Teachers Mutual Bank, is with our car loan repayment calculator. This will give you a rough idea of what your repayments are likely to be based on factors such as differing loan amounts and terms. However, on top of a car loan calculator for Teachers Mutual Bank, your dedicated consultant will run extensive affordability checks to determine how much you’ll be able to borrow.

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