Bank of Sydney Variable Rate Loan


The Bank of Sydney Variable Home Loan allows you to make additional payments of up to a certain amount each year, which means you can use any extra income you may not have accounted for to pay off your loan a little faster. Meanwhile, the redraw facility allows you to redraw any extra payments you might have made. This provides some extra control over finances when balancing the pressures of living expenses and a mortgage.

While this is a variable rate loan, there is a split loan facility to enable you to find a balance between the security of a fixed rate of interest and the possibilities of a variable rate – giving you some more freedom in terms of how your loan will be set up and how it will operate over the course of its term.

The Bank of Sydney Variable Rate loans require a deposit of 20 per cent, or 10 per cent if you take on the cost of lenders mortgage insurance.

 However, the flexibility this loan offers comes at a price with a very high variable interest rate and high amount of fees.

Who is the Bank of Sydney Variable Rate Loan good for?

The Bank of Sydney Variable Rate Loan could suit owner-occupiers and first time investors who would like to put some additional savings toward their mortgage who need the flexibility of a split loan option and redraw facility.

The option of making additional repayments could allow borrowers to refinance more quickly, but borrowers looking to refinance as fast as possible may prefer to seek a loan with unlimited additional payments and one with a lower upfront cost and interest rate.

Review - What RateCity says

The Bank of Sydney Variable Rate Loan has both a high variable rate and high fees, which makes it less attractive than comparable options on the market.

The flexible combination of loan splits, additional payments and a redraw facility may be appealing, though, if you’re looking for options to flex around your financial management.

Bank of Sydney Variable Rate Loan Options

The Bank of Sydney offers variable rate loan options to suit the needs of both owner-occupiers and investors.

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  • Early repayments and redraws allowed.
  • Split loan option.
  • Small deposit requirement.
  • Very high variable interest rate.
  • High upfront cost.
  • Discharge and ongoing monthly fees.

Must meet minimum deposit requirement.

Must be an Australian citizen or resident.

Must be over 18 years of age. 

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
  • Estimated upfront fees: $1130.00
  • Discharge fees: $300
  • Ongoing fees: $10 monthly

You can expect to pay high establishment and legal fees when setting up this loan, a monthly administration fee, as well as a discharge fee when your loan term ends and you’ve repaid in full.

Fees may also be applicable to additional payments and use of the redraw facility.

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

Bank of Sydney has been around since 2001, and has branches in Sydney, Melbourne, and Adelaide and prides itself on its customer-focused approach.

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