Defence Bank Smart Mover Line of Credit

Features

The Smart Mover Line of Credit from the Defence Bank offers you a maximum deposit size of 20 per cent to lock down your property. You’ll need Lender’s Mortgage Insurance if you do choose the 20 per cent option.

The Smart Mover Line of Credit from the Defence Bank does not come with an offset account, or a redraw facility. Keep this in mind if you make any additional repayments in conjunction with the fact that there is no fixed rate option for this loan, as you can’t lock anything in and you won’t have the luxury of dipping back in to any payments you’ve made. It would be a good idea to check all your finances line up before applying for this loan to ensure you won’t end up in the red.

The Smart Mover Line of Credit from the Defence Bank won’t charge you any extra fees if you choose to make any extra repayments, but do keep the lack of redraw facility in mind when making these.

This loan is simple in nature and easy to understand, making it good for first homebuyers who are still finding their feet in the market. It would be a good idea to check your deposit size against the fees  that come along with this loan to ensure that you won’t end up in any debt and that all your finances will line up.

Who is the Defence Bank Smart Mover Line of Credit good for?

The Smart Mover Line of Credit from the Defence Bank is a basic loan which is great for first homebuyers due to its simple nature. Investors may not be as attracted to this loan as others due to the high rate and the lack of an interest only repayment facility. Refinancers and owner-occupiers may also look to this loan as it has low fees, which offset the high rate, and can make their transition within the housing market easier to handle and execute.

Review - What RateCity says

The Smart Mover Line of Credit from the Defence Bank is a suitable loan if you’re a first homebuyer, refinancer or owner-occupier. The simple nature of the loan combined with the low fees that offset the high rate make it a good choice for people either entering the housing market or looking to transition from first homebuyer to refinancer. If you’re an investor, this loan probably isn’t the best for you. There’s no fixed option for this loan, no redraw facility, and no interest only option. If your plan is to sell up within a number of years, the money you spend on the property combined with the fees and high rate will make it a bit of an overspend.

The main downside about this loan is the lack of versatility. With so little products involved in the loan, if you’re not a first homebuyer or simply don’t have the cash, you may find this loan puts you in the red. Best to double check what you can afford against what this loan will make you pay.

Defence Bank Smart Mover Line of Credit Options

The Smart Mover Line of Credit from the Defence Bank gives you a simple loan to help you understand the confusing housing market.

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More details

Variable Rates from

5.02%

Advertised rate

5.09%

Comparison rate
Pros
  • Additional repayments allowed.
  • No ongoing fees.
  • Branch access.
Cons
  • No offset account.
  • No redraw facility.
  • High rate.
Eligibility
Must meet serviceability criteria. Must be a member of the bank.
Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Line of Credit Loans
Fees
  • Estimated upfront fees: $900.25
  • Discharge fees: $250
  • Ongoing fees: $0

The Smart Mover Line of Credit from the Defence Bank has a number of moderate fees that come along with it. There are no ongoing fees, however there is an upfront fee and a discharge fee. If you select the Defence Bank Low Rate Credit Card in conjunction with this loan, you will pay an annually ongoing fee for that product. These fees in conjunction with the high rate may be enough to put you in the red down the track, so use our online calculator to check everything lines up and there are no gaps in your plans.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Monthly repayments
About Defence Bank
Defence Bank is member owned, meaning that you have to become a member to become a customer. This isn’t so much of a catch, however, as members reserve the right to vote on changes within the bank, and any savings and profits the bank makes are passed on to you in the form of lower rates, fees, and versatile products. Defence Bank also has branch access so that when you begin the application processes you can go in and speak face-to-face to make the process easier for you. Telephone and online banking make it convenient for you to access your assets without having to travel to a branch.
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