If you're looking for a fee free home loan with basic features, then the Adelaide Bank SmartSaver Home Loan is worth considering. As one of Adelaide Bank's more basic home loan offerings, it features variable and fixed interest rates across the Owner Occupier and Investor categories, and the ability to split your loan into variable and fixed rate parts. Adelaide Bank also offers a home loan package with more comprehensive features, so it is prudent to consider what's most important to you before applying. Further details about the Adelaide Bank SmartSaver Home Loan benefits are outlined below.
Basic non-package loan for owner occupiers:
The key features under this relatively basic offering for owner occupier loans are focused on pricing. Specifically, pricing advertised includes a $0 monthly fee, and a low variable rate starting from 6.09% p.a. (6.10% p.a. comparison rate) on Principal and Interest repayments. An alternatively option offered is a fixed rate loan, where for example there is a 3 year fixed interest rate from 6.49% p.a. (6.42% p.a. comparison rate), in addition to other investor fixed-rate terms, shown on this page. Upon expiry of the fixed rate term, the interest rate applied to the loan will revert to a variable rate, currently starting from 7.73% p.a. (7.77% p.a. comparison rate), however borrowers usually renegotiate prior to this. Please keep in mind that despite this being a relatively basic no-frills product offering by Adelaide Bank, these rates should be able to be negotiated down, particularly for people borrowing a sizeable amount, or for those who hold a sizeable deposit or equity in a property already. This loan does require a minimum of either 5% deposit or 5% existing equity, and often anything above these amounts will help you negotiate a lower interest rate. There is the option to split the loan into Variable and Fixed rate components, plus being able to make extra repayments and in the future, redraw funds if desired. In terms of repayments Interest Only repayments or Principal and Interest repayments are available.
Basic non-package loan for investors:
The key features under this relatively basic investor offering are focused on pricing. Specifically, the pricing advertised includes a $0 monthly fee, and a relatively high variable rate starting from 6.43% p.a. (6.47% p.a. comparison rate) on Principal and Interest repayments. An alternative option many investors opt for is a fixed rate loan, where for example there is a 3 year fixed interest rate from 6.69% p.a. (6.87% p.a. comparison rate), in addition to other fixed-rate periods also displayed on this page. Upon the expiry of the fixed rate period, the loan will revert to a variable rate priced loan, currently priced from 6.88% p.a. (6.92% p.a. comparison rate), however commonly investors renegotiate a new loan prior to this expiry date. Negotiation of these rates down should be possible, depending on your circumstances. Also, while you should speak with your accountant, many investors opt for an interest only loan, of which the rates are also outlined on this page. While these are relatively lower rates under Adelaide Bank's more basic no-frills offering, these rates may still be able to be further negotiated down, particularly for investors who are borrowing a large amount, or if they who hold a sizeable deposit or equity in the property already. For investors, this loan does usually require a minimum of 10% deposit or 10% existing equity in the property, and often anything above these amounts will help you negotiate a lower interest rate. There is the option to split the loan into Variable and Fixed rate components, plus being able to make extra repayments and in the future, redraw funds if desired. In terms of repayments Interest Only repayments or Principal and Interest repayments are offered.
Summary
Considering the basic features available with this product, this home loan will appeal to a range of people, either as a home owner or as an investor. It will also appeal to someone where the lesser known Adelaide Bank brand and service isn’t a concern, or for those who are happy to bank with a lender that offers features most important to them, over who the lender is.
