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Adelaide Bank SmartSaver Loan

Features

The Adelaide Bank SmartSaver Loan is a basic or ‘no-frills’ home loan for new customers. It offers a moderately-low variable rate and is available to both investors and owner-occupier borrowers.

Some of the key features of the SmartSaver Loan include a redraw facility, which is a popular choice for many borrowers. The loan also allows borrowers to make extra repayments without penalty, which can be a great way to pay down the mortgage faster.

The Adelaide Bank SmartSaver Loan also allows for the choice between repayment types of principal and interest, or interest only. It allows for borrowing of up to 90 per cent of the property value, or up to 95 per cent of the property value if lenders mortgage insurance is being added to the loan. This is sometimes referred to as ‘capitalising’ lenders mortgage insurance, but in simple terms means it can be rolled into the loan and paid off over time.

On the downside, this loan does not offer a mortgage offset account.

Who is the Adelaide Bank SmartSaver Loan good for?

The Adelaide Bank SmartSaver Loan is designed for both investors and owner-occupier borrowers. It can be used for the purchase or refinance of a property, and for new customers to the bank. It might suit a borrower who prefers to weigh up low-cost over a full-featured home loan.

That’s because the loan offers a moderately-low variable rate and no ongoing fees. But doesn’t offer all the bells and whistles of some other home loans in the market. For instance, the loan doesn’t offer a mortgage offset account, which is a popular feature for many borrowers.

The Adelaide Bank SmartSaver Loan might suit someone who prefers the flexibility of being able to make additional repayments, and who may want to access additional funds using a redraw facility.

Review - What RateCity says

The Adelaide Bank SmartSaver Loan offers a moderately-low variable rate and no ongoing fees. Some upfront fees, and discharge fees, do apply.

It’s a ‘no-frills’ home loan, with basic features such as a redraw facility. But it does not offer a mortgage offset account. This loan also allows for additional repayments, without penalty, which is a good feature for those borrowers who want to pay down the loan as fast as possible.

Adelaide Bank SmartSaver Loan Options

The Adelaide Bank SmartSaver Loan is available with a range of tiers, depending on the size of the deposit and whether the borrower is using the loan for investment purposes or as owner-occupiers. Interest rates may vary depending on borrowing conditions.

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Fixed Rates from

4.17%

Advertised rate

4.41%

Comparison rate

Variable Rates from

4.04%

Advertised rate

4.08%

Comparison rate
Pros
  • Moderately-low variable rates.
  • No ongoing fees charged.
  • Redraw facility available.
Cons
  • No mortgage offset account available.
  • Upfront and discharge fees apply.
  • Not available to existing Adelaide Bank customers.
Eligibility

Must be an Australian resident.

Must not be self-employed for less than two years.

Minimum deposit of 10 per cent, or 5 per cent if lenders mortgage insurance is factored into the loan.

Must meet lender’s serviceability requirements.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $495
  • Discharge fees: $325
  • Ongoing fees: $0

The Adelaide Bank SmartSaver Loan has no ongoing fees. By comparison many other home loans in the market charge monthly or annual fees, which can run into the hundreds or thousands of dollars.

The loan does charge some upfront fees, however, which may include a settlement fee and / or an application fee.

Additional fees may also be charged, such as a discharge fee at the time of closing the loan.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
  • Loan allows split interest rate
About Adelaide Bank

Adelaide Bank has been operating for more than 100 years. Formerly operating as the Co-operative Building Society of South Australia, it became a bank in 1994. In 2007 Adelaide Bank merged with Bendigo Bank, forming Bendigo and Adelaide Bank Limited and is a publicly-listed company. Adelaide Bank customers can use more than 430 Bendigo Bank branches around the country. Though a shared-network arrangement Adelaide Bank customers can use both Bendigo Bank and Suncorp Bank ATMs.

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