The basic home loan comes with decent interest rates and no monthly fees. It is certainly one to have on your shortlist.
Not every borrower wants or needs a host of features with their home loan. Rather than pay for these features, no frills home loans such as the BankSA Basic Home Loan offers lower rates and fees in return for being light on extras.
With the Basic Home Loan from BankSA you can enjoy a discount on your variable rate and some simple features designed to help you pay your loan off quicker.
|Product Name||BankSA Basic Home Loan|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$100,000|
|Maximum Loan Amount||$1,000,000|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||95%|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||No|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$0 p.a.|
- No monthly account keeping fee
- Available for owner occupiers and investors
- No offset account
Things to consider about this loan
The Basic Home Loan is a full documentation loan, which means you’ll have to supply the full range of paperwork generally expected when applying for a home loan. If you’re self-employed or find it hard to prove your income for other reasons BankSA also offer low doc loan options.
This loan can be used by owner occupiers or investors buying a property or vacant land.
Features of the BankSA Basic Home Loan
There are a few features which you should be mindful when comparing the Basic Home Loan from BankSA.
- Loan amounts: The minimum loan amount is $100,000 and the maximum is $1,000,000 for this loan.
- Loan term: Up to 30 years available for principal and interest repayments, or 15 years for interest based repayments.
- Redraw: Borrowers can access any extra payments they have made and save on withdrawal fees by making the request over the phone or online.
- Family Pledge: This can help reduce or completely avoid having to pay Lender’s Mortgage Insurance (LMI); if a guarantor agrees to take responsibility for part of your home loan by using his/her home’s equity to add security to your loan agreement.
- Repayment Pause: Lower or halt repayments for 3-12 months if/when you have a legitimate period of time away from work, such as maternity leave
- Deposit Protect Bond: You can use a Deposit Protect Bond instead of paying an immediate cash deposit, this way you can keep earning interest on deposit money until the settlement is completed. This is also ideal for borrowers using equity from an existing property
Fees you can avoid:
- Monthly account-keeping fee. Being a basic home loan means there are no monthly fees charged for this loan.
- Establishment fee. This loan has an establishment fee of $0 which covers the set up costs of this loan.
Fees you can’t avoid:
- Valuation fee. From . This is charged to find the value of your property and the exact amount depends on the property location and size.
Applying for this loan
In order to be eligible for this loan you must be at least 18 years old, have sufficient income on a self-employed or employed basis and pass the identity and credit verification process:
- The first step is to make an initial application. Most people choose to do this through the easy 15 minute online application form. You can also do so in person in your nearest branch, or over the telephone. This stage involves the provision of some basic information about yourself and your financial situation.
- Confirmed approval is the 2nd stage of the process. This is where BankSA confirm that you are potentially eligible for the loan to which you have applied.
- Next, your application information will require verification. You will be asked to provide proof of income, proof of wealth, details about the purpose of your loan and documents relating to your general financial situation. This information will be sent to the lender, along with standard verification documents to confirm you are who you claim to be.
- The property which you wish to purchase will then be valued. This is to ensure that the loan is based on the true value of the assets being purchased.
- Next, all of the collated information will be assessed by an underwriting team. They will then come to a judgement as to whether you qualify for the loan.
- If you are approved the loan you will be sent a contract to sign, terms and conditions and any other relevant paperwork.
- Agreed Settlement. After the paperwork is signed and returned to the lender your loan will commence.
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BankSA Basic Home Loan Interest Rate History vs RBA Cash Rate Graph
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