Shield yourself from ever-changing loan interest rates by getting a fixed rate home loan with Bank SA.
While it’s not the only way to compare home loans, interest rates are one of the most important features to look at when choosing a loan. This, in addition to fees and other charges, will eventually determine just how much you end up paying. Unfortunately, rates are never constant and can change regularly due to a range of economic factors. Bank SA’s Fixed Rate Home Loan gives you a chance to have a fixed interest rate on your loan for up to five years. At the end of these years, you get the option of choosing another fixed rate, or can opt to shift to their variable rate loan. During the time that your loan is fixed, you’ll pay the same amount in repayments, making it easier to budget.
| Product Name | BankSA Fixed Rate Home Loan |
|---|---|
| Interest Rate Type | Fixed |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $10,000 |
| Minimum Loan Term | 1 year |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 95% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Fixed Interest Option | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest and Interest Only Options |
| Application Fee | $600 |
|---|---|
| Ongoing Fees | $10 monthly ($120 p.a.) |
| Settlement Fee | $100 |
| Discharge Fee | $350 |
Pros
- Mortgage offset account.
- Flexible repayments.
Cons
- $600 establishment fee.
- $100 settlement fee.
- A $350 discharge fee applies when closing the loan.
Things to consider about this loan
The Bank SA Fixed Rate Home Loan is specifically designed for homeowners and investors for properties and vacant land. The loan is also available for first time home owners who can also benefit from the Government’s First Home Owner Grant. The fixed interest rate makes it easy for you to know just how much you are supposed to pay and arrange your budget appropriately. It should be known that this is a full documentation loan, but BankSA also offers low doc loan options, as well as variable rate loans.
Features of the Bank SA Fixed Rate Home Loan
This loan has great and unique features that make it a good option for anyone looking for a home loan.
- Rate lock. A rate lock literally locks in the rate you’ll receive on your loan for 90 days. This ensures you receive the interest rate you wanted when you lodge your application.
- Partial interest offset account. Benefit from a reduced interest rate for the portion of your home loan equal to the amount in the linked partial offset account.
- Package deal to save more. Save money on fees and get special interest rates with the Advantage Package, which is a package deal for your home loan, credit card and transaction account.
- Loan repayment. The Bank SA Fixed Rate Home loan offers two modes of repayment to choose from; principal and interest repayments and interest-only repayments. For principal and interest repayment you can make weekly, fortnightly or monthly payments while interest-only loans only offer monthly repayments. You also get the option of setting up an automatic repayment plan from a specific account and can also make additional repayments of up to $10,000 for your home loan before break costs apply. On investment loans, you can also pay the interest in advance and get a discount of 0.2% per annum off your interest rate.
- Loan redraws. You can access any extra repayments you make by requesting a redraw of up to $10,000 annually with break costs being payable for redraw requests in excess of the $10,000.
- Family pledge. You can avoid paying Lender’s Mortgage Insurance (LMI) by having a family member guarantee your part of your home loan by using their home equity as extra security.
- Split your loan. You also get the opportunity to split your loan into fixed and variable portions to receive the benefits of both.
- Pause loan repayments. Bank SA gives you the chance to take a break in your loan repayments with good reason such as absence or leave from work (e.g. maternity leave).
Fees
Fees you can avoid:
- LMI. This is only charged if you borrow more than 80% of the property’s value. The fee amount depends on the property price and other factors.
- Rate lock fee. As mentioned above, this is only charged when you want to lock in the advertised rate for 90 days. This costs 0.15% of the loan amount or $500, whichever is greater.
- Break costs. As with any fixed rate loan, you’ll be charged fees if you try to get out of this loan before the fixed term is over.
Fees you can’t avoid:
- Monthly administration fee: $10. This is charged to carry out maintenance on your account.
- Establishment fee $600. The set up costs of this loan. Note too that other government and extra fees and charges may apply. The exact costs of these will depend on your loan size and other factors.
Applying for this loan
To apply for the home loan you will need to provide detailed information on the following:
- Personal and contact details.
- Your savings history over the last three months.
- Give proof of income. This differs depending on your source of income. For instance, if you are self-employed you will need to supply a copy of your financial statements over the last two years and a copy of your tax returns, while if you’re employed you’ll be asked to give a copy of the last two pay slips.
- You will also be required to give information on any other loans or monetary commitments you might have such as credit cards. You are also required to mention any extraordinary expenses such as maintenance or private schools fees.
- The bank also requires your borrowing purpose and other relevant documents.
