Adelaide Bank SmartFix Home Loan
The Adelaide Bank SmartFix is a fixed rate home loan with a 100% offset account so you save in interest.
Richard Whitten is a money editor at Finder, and has been covering home loans, property and personal finance for 6+ years. He has written for Yahoo Finance, Money Magazine and Homely; and has appeared on various radio shows nationwide. He holds a Certificate IV in mortgage broking and finance (RG 206) and a Tier 1 Generic Knowledge certification (RG 146).
Funding obtained through the SmartFix home loan cannot be used towards a second mortgage or for land purchases. It’s also not an option for the purchase of inner city apartments.
About this loan
What are the features and benefits of the Adelaide Bank SmartFix Home Loan?
- Loan amount. You're able to borrow up to $5 million with Lenders Mortgage Insurance (LMI). There's also a minimum of $10,000 with this loan.
- Maximum Loan-to-Value Ratio (LVR). Borrowers choosing to make principal and interest repayments may qualify for up to 95% of the value of the property, or 90% for those making interest only repayments.
- Interest rate. The interest rates for the SmartFix home loan are; 4.69% for one year, 4.84% for two years, 4.89% for three years, 5.39% for four years and 5.34% for five years.
- Split loan options. You can split this loan into more than one portion. Each split comes with a $100 application fee.
- 100% Offset account. This loan is rare, as it has a fixed rate but still offers an offset account. Offset accounts are linked transaction accounts which you can deposit funds into. These funds can reduce the amount of interest due on your loan.
- Repayment frequency. Principal and interest repayments may be made weekly, fortnightly or monthly while interest-only repayments are made monthly. Voluntary additional repayments of up to $20,000 per year may be made without penalty.
- Redraw. You can redraw additional repayments you've made for free online or through phone banking. Redraws may be made free of charge, while manual requests are $50. The minimum amount permitted to redraw is $500.
What fees and charges come with this loan?
- Lenders Mortgage Insurance (LMI). Amount varies. LMI protects the lender in the event that the borrower defaults on the home loan. You can avoid this extra charge, which varies depending on the amount of the loan, by borrowing less than 80% of the home's value.
- Break costs. Amount varies. Break costs to the borrower will only be added if the contract for the fixed rate loan is closed or broken.
- Rate lock. Amount varies. The Adelaide SmartFix comes with a free rate lock for 90 days, meaning you can lock in the advertised rate you want and relax knowing you won't receive a worse rate during the time it takes to settle.
- Application fee. $375. This is paid to the bank for assessing, processing and preparing all of the documents necessary for the loan application
- Settlement fee. $100. This is paid to Adelaide bank for settling the loan
- Funds disbursement fee. This is a $15 fee.
- Administration fee. $10 per month. This is a monthly fee charged for upkeep of your home loan.
How to apply
Here is a list of eligibility criteria you'll need to meet to apply for this loan:
- Applicants must be at least 18 years of age
- Applicants must be a citizen or Permanent Resident of Australia with good credit rating
The full amount of the loan that Adelaide Bank may extend to you will be based on the current state of your finances, your employment history and the likelihood that you will be able to make repayments on time. You'll need to supply:
- Proof of your gross annual income, either with pay slips or tax documents
- Proof of any income you receive from other sources
- Proof of current assets, including their value
- Proof of current liabilities, including credit limits
- Proof of the value of property that is being purchased with this loan.
When it comes to choosing a home loan a borrower should take their time and compare as many options as possible before making that final decision. Remember to compare your options so you know what's the best deal for you.