Features of a Bank of Sydney Home Loan
Bank of Sydney home loans are packed with exciting customer-centric features that provide borrowers with solid value. Some prominent features are listed below -
Banks extend a home loan against a property. The property, whose value is higher than the loan amount, acts as a guarantee for the lender. In case of loan default, the possession of the property goes to the bank, which can sell it and recover its costs.
Loan to Value Ratio (LVR)
Bank of Sydney provides an LVR of up to 70% on home loans with flexible interest rates and up to 80% on fixed interest rates. The borrower solely will be required to finance 20%-30% of the property’s value. The loan-to-value ratio is a percentage figure representing the loan amount against the bank’s valuation of the property.
Awards and Acclaims
In 2023, the Bank of Sydney was awarded 3 Mozo Expert Choice Awards in the home loan category. Mozo is a financial comparison organisation which aims to simplify financial decision-making. These awards reflect the exceptional value offered by the bank to its customers.
Free Repayment and Redraw Facilities
Advance repayments can be flexible without incurring extra charges. Additional repayments can also be withdrawn using Internet Banking, free of charge. It must be kept in mind that redraw facilities are available only after a fixed period of time specified by the bank. Moreover, a maximum of $10,000 of repayment per year can be made on home loans with a fixed interest rate without incurring any extra charges.
Bank of Sydney home loan rates are fixed and flexible in nature. Customers can also switch from fixed to variable rates and vice versa, owing to any change in their circumstances. However, additional charges like break costs may apply upon making such a change. The bank also offers the option to split the interest rate on the loan amount . Customers can opt for a fixed interest rate over one portion of the loan and a variable interest rate over the remaining portion.
Flexible Repayment Tenure
Bank of Sydney home loans can be repaid within 40 years in fortnightly, weekly or monthly instalments. After consulting with their bank managers, one can switch their repayment options from Principal and Interest to Interest Only. Comfortable and convenient repayment options provide greater financial control to the applicants on their debt.
100% Offset Account
Bank of Sydney offers 100% offset account options on its Expect More Home Loans. An offset account is a transactional account linked to a loan account. When interest is calculated for home loan applicants with an offset account, the offset account balance is deducted from the principal amount owing and the interest is calculated on the remaining amount.
For example -
For a loan account of $300,000 linked to an offset account of $50,000, the interest will be calculated at $250,000.
Total loan amount: $300,000
Offset account balance: $50,000
The interest rate will be applicable on - $250,000 ($300,000-$50,000)
No Additional Fees
The Bank of Sydney charges no additional monthly or annual fees to home loan seekers. The bank covers legal fees up to $475, valuation fees up to $420 and an annual package fee worth $395 for its Expect More Home Loan applicants.