The SmartDoc offers borrowers a good deal of flexibility which enable them to reduce interest costs substantially over the life of the loan. Features include a 100 per cent offset account and extra repayments are allowed with no cap. There is also a fee free redraw facility.
Split loans are available, which gives borrowers plenty of options when it comes to managing their loan. But Adelaide Bank allows only principal and interest repayments on the variable loan.
It’s worth noting that the SmartDoc has relaxed the eligibility requirements for documentation of income, to make it easier for the self-employed to sign up.
This is counter balanced, though, by the relatively large minimum deposit required from borrowers and compulsory lenders mortgage insurance is needed where deposits are less than 40 per cent of a property’s value. Borrowers need to be aware that this protects the lender, not them, against default.
The SmartDoc loan can also be used for bridging finance, though an extra $200 fee applies if you want to use the loan for this purpose.
The Adelaide Bank SmartDoc Loan could be great for self-employed people with an established income who are looking for maximum flexibility and strong refinancing options. The high minimum deposit means it could be better suited to those who can afford to pay a big deposit or for people buying a small property or refinancing an existing loan. However, you don’t get an interest only option on repayments, so this may put some investors off.
Adelaide Bank has designed the SmartDoc home loan to help self-employed borrowers access a loan with plenty of features while reducing the usual obstacles involved with providing income documentation. The loan offers borrowers some strong possibilities in terms of refinancing and flexible repayment options which can allow them to reduce interest costs. The large minimum deposit, however, and additional fees for guarantors and extra security means it might not be ideal for those entering the property market for the first time.
The Adelaide Bank SmartDoc Loan offers a number of fixed term options for both Home buyers and Investors, with unfixed options too.