The Adelaide Bank SmartDoc Fix home loan is a competitive low doc fixed rate home loan offering a 100% offset facility.
With the Adelaide Bank SmartDoc Fix home loan you are not only locked into a competitive interest rate for one to five years, but you can offset your principal loan amount with any money you are trying to save. You may borrow up to 80% of the value of your home and choose terms ranging from five to 30 years.
You can also apply for the SmartDoc Variable home loan which offers the same features with a variable interest rate. The flexibility of both makes them good loans to consider when you are looking to finance a new home or refinance the mortgage you have now.
|Product Name||Adelaide Bank SmartDoc Fix Home Loan|
|Interest Rate Type||Fixed|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$10,000|
|Maximum Loan Amount||$2,000,000|
|Minimum Loan Term||5 years|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||Yes|
|Mortgage 100% Offset||Yes|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||Yes|
|Suitable for Investment||No|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Lender's Legal Fee||$0|
|Ongoing Fees||$15 monthly ($180 p.a.)|
- $0 legal fee
- Minimum Loan Amount of $10000
- You can split loans to keep funds separate
- There is $325 exit fee
- This loan is not available for investment purposes
- An application fee of $375 along with a settlement fee of $120
Things to consider about the Adelaide Bank SmartDoc Fix Home Loan
While the Adelaide Bank SmartDoc Fix home loan can be used for the purchase or refinancing of an owner-occupied or investment property, it is not an option for trusts or companies, and it can not be used for land or construction purposes.
Refinancing an existing mortgage with an Adelaide Bank SmartDoc Fix home loan is an option for homeowners, but Adelaide Bank won’t allow it as a second mortgage. It may however be used for debt consolidation or as a home equity loan.
Features of the Adelaide Bank SmartDoc Fix home loan
- Loan amount. You may borrow as little as $10,000 and as much as $2 million with this loan, but Lender’s Mortgage Insurance (LMI) charges might be applied as a condition of approval for amounts that are high if you borrow over 60% of the property value.
- Split loan options. You can split this loan into more than one portion, meaning you can take advantage of both fixed and variable rates. There's a $100 fee per split.
- 100% Offset facility. A 100% offset is available for no additional charge with this loan. An offset account is a linked account which reduces the amount of interest due. If you have $10,000 in an offset account and your loan is $300,000, you’ll only pay interest on $290,000.
- Maximum Loan-to-Value Ratio (LVR). This fixed rate loan allows a homebuyer to borrow up to 80% of the value of the house. As mentioned above, if you borrow more than 60% of the property’s value you may have to pay LMI fees.
- Loan terms and repayments. Borrowers can choose to pay either principal and interest or interest-only repayments for a period of five to thirty years. Extra payments are allowed up to a maximum of $20,000 per year.
- Repayment frequency. When making principal and interest payments you can choose weekly, fortnightly or monthly repayments. Interest-only payments can only be made on a monthly basis. The payment will be deducted automatically from the offset balance.
- Redraw. You can withdraw any extra repayments you make using the redraw facility. This is free if you redraw online or over the phone, and a $500 minimum amount applies.
Fees you can avoid
- Lenders Mortgage Insurance. This fee is charged to cover your bank in the event that you default on your home loan. You can avoid paying LMI if your loan to property value doesn’t exceed 60%.
Fees you can’t avoid
- Application fee. $375. The application fee is used by the bank to process and prepare all of the documentation necessary to process the loan application.
- Monthly administration fee. $15 per month. A monthly administration fee will apply to the loan
- Settlement fee. $120. The settlement fee is paid to the bank when the loan is settled
Calculate your repayments by filling in some of your details
Applying for the Adelaide Bank SmartDoc Fix home loan
In order to apply for the Adelaide Bank SmartDoc Fix home loan you must be a citizen of Australia or a permanent resident over the age of 18. Temporary residents are not eligible for this home loan package.
Your eligibility for the loan will also be based on the amount you’re asking to borrow vs the amount your financial records show you can pay on a monthly basis. Your income and expenses will both be taken under consideration.
During the course of the loan application process you will be asked to provide proof of:
- Gross annual income
- Income that is derived from other sources, eg. spousal payments
- All assets including their current values
- Liabilities including credit limits
- The value of the home that is being offered as security
You will also want to consider these items before you begin the loan process:
- What you are able to afford as an additional monthly payment
- Your preference for rate options
- If you have the available funds to pay loan fees upfront or if you would prefer that they were incorporated into the loan amount.
Taking on a mortgage is a big responsibility. Research all of your options beforehand and take the time to compare different loan packages before you commit to one.
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Adelaide Bank SmartDoc Fix Home Loan Interest Rate History vs RBA Cash Rate Graph
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