BankSA Relocation Loan
The Relocation Home Loan from BankSA acts a bridging loan to give you funds to pay for your new property’s deposit as you wait to sell your current property.
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).
Borrowers get two options with the Relocation Loan; you can select a loan with or without an end loan. With no end loan, you’ll be required to pay your loan in full when the existing property is sold. With an end loan, you get to select one of the many BankSA Home Loans when your property is sold. This option allows customers to have two loans that take care of the relocation period and the continuing end loan which you have selected after the period for the Relocation Loan comes to completion.
The repayments will differ depending on the loan you have and so will the loan term. It’s important to point out that the loan term for building loans is 12 months and for non-building loans, it’s six months.
About this loan
The Relocation Loan gives customers a smooth transition when disposing of one property and relocating to another. Borrowers have access to funds to pay a deposit for the new property and can borrow the balance when they settle the first loan. As mentioned, this loan is designed to be a substitute to bridging finance, which can be quite expensive.
What are the features and benefits of the BankSA Relocation Loan?
Customers get to choose the features they need with the Relocation Loan.
- Deposit Protect Bond: This can be used on end or no end Relocation Loan options. BankSA allows borrowers to utilise Direct Protection Bonds as opposed to immediately paying cash deposits. The bond can be used until settlement and this option is useful when using an existing property as equity to finance the new property.
- Split rate options: It's possible to split the end loan with part fixed interest rate and part variable rate.
- Interest offset options: Whether or not you can attach an offset account to your loan will depend on the exact BankSA product you choose, but they are available.
- Additional repayments and redraw: You can make additional repayments on your loan (if you have an end loan) and use the redraw facilities to get access to these funds if you need them again. If you don't have an end loan, no payments are required, but you can make lump sum repayments if you'd like to.
How to apply
You can enquire about the Relocation Loan from BankSA online to get more information about this loan. If you feel that the Relocation Loan might be useful for you, you'll need the following documents to apply.