Unlock the equity in your home
If you’re a homeowner, before you put that next big purchase on your credit card, you may want to consider a line of credit on your home loan.
Laine GordonSep 6, 2011( 3 min read )
Expect More Home Loan Package Fixed (No Package Fee) 1 Year
Smart Home Loan
special
Get one of the lowest variable interest rates on the market and pay no application or ongoing feesGet one of the lowest variable interest rates on the market
Advertised Rate
2.88%
Variable
Comparison Rate*
2.90%
Smart Home Loan
No ongoing feesExtra repayments + redraw services
View NowAdvertised Rate
3.66%
Fixed - 1 year
Comparison Rate*
4.10%
Maximum LVR
70%
Monthly Repayment
$1,528
Pros and Cons
Pros
- No ongoing fees
- Parents can sign as guarantor
- Repayments will not change during fixed period
Cons
- Limited extra repayments
- No redraw and no offset
- Discharge fee at end of loan
- Repayments won't decrease if RBA cuts rates
Bank of Sydney Fees and Features
Maximum LVR 70% | Interest rate structure Fixed - 1 year |
Borrowing range $100k - $5m | Total Repayments $458,400 |
Principal & interest | Interest only |
Loan term range 1 - 30 years | Offset account No |
Extra repayments Allowed with restrictions | Redraw facility |
Allows split interest | Suitable For Owner Occupiers |
Applicable States ACT, NSW, QLD, SA, VIC | |
Estimated upfront fees $150 | Application fee $0 |
Settlement fee $150 | Valuation fee $0 |
Legal fee $0 | Ongoing fee $0 |
Discharge fee $300 | Property Type |
SMSF Trustee | Minimum SMSF Amount |
Other Benefits
Legal fees covered by package up to $475 and Valuation fees covered by package up to $420
Compare and review home loans with similar features
Bank of Sydney, has been operating in Australia under a full Banking Licence since April 2001.
The bank employs over 150 staff, with headquarters in Sydney and over 16 branches throughout NSW, Victoria and South Australia. It offers financial products such as personal, car and home loans, credit cards, insurance as well as mortgage broking. The bank also offers currency exchange and international money transfer services.
Bank of Sydney home loan calculator
Interested in a Bank of Sydney home loan? RateCity has a suite of calculators that can show you what your repayments would be and how Bank of Sydney compares to its competitors. Simply plug in your borrowing amount below.
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FAQs
What’s wrong with traditional ratings systems?
They’re impersonal
Most comparison sites give you information about rates, fees and features, but expect you’ll pay more with a low advertised rate and $400 ongoing fee or a slightly higher rate and no ongoing fee. The answer is different for each borrower and depends on a number of variables, in particular how big your loan is. Comparisons are either done based on just today or projected over a full 25 or 30 year loan. That’s not how people borrow these days. While you may take a 30 year loan, most borrowers will either upgrade their house or switch their home loan within the first five years.
You’re also expected to know exactly which features you want. This is fine for the experienced borrower, but most people know some flexibility is a good thing, but don’t know exactly which features offer more flexibility than others.
What is the flexibility score?
Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.
They’re not always timely
In today’s competitive home loan market, lenders are releasing new offers almost daily. These offers are often some of the most attractive deals in the market, but won’t get rated by traditional ratings systems for up to a year.
The assumptions are out of date
The comparison rate is based on a loan size of $150,000 and a loan term of 25 years. However, the typical loan size is much higher than that. Million dollar loans are becoming increasingly common, especially if you live in metropolitan parts of Australia, like Sydney and Melbourne. It’s also uncommon for borrowers to hold a loan for 25 years. The typical shelf life for a home loan is a few years.
The other problem is because it’s a percentage, the difference between 3.9 or 3.7 per cent on a $500,000 doesn’t sound like much, but equals around $683 a year. Real Time Ratings™ not only looks at the difference in the monthly repayments, but it will work out the actual cost difference once fees are taken into consideration.