Bank of Sydney

About Expect More

Key Features

• Generally speaking, offset accounts is more common with variable rate home loans than fixed loan options.

Interest only loans have traditionally been tailored to investors so they can reduce their mortgage repayments and maximise their tax benefits and overall return on investment (ROI). However, getting home loan with interest only (IO) has its place and some lenders are willing to consider your application if you can provide valid reasons.

LVR is an acronym for Loan-To-Value Ratio. The LVR is the amount you are borrowing against the property value being used as security, represented as a percentage.

Unlike in the US, there are no lenders in Australia that offer 20 or 30 year fixed rates for standard residential home loans. Bank of Sydney Expect More offers fixed loan terms between 1 - 2 years.

Unlike in the US, there are no lenders in Australia that offer 20 or 30 year fixed rates for standard residential home loans. Bank of Sydney Expect More offers fixed loan terms between 1 - 5 years.

Fees & Costs

• A 100% offset account is an account linked to your home loan where you can park your savings and spare cash to reduce the interest you pay. Then, when interest is calculated on your home loan, the balance in your offset account is deducted from the loan amount owing, and interest is only charged on what remains.
• Bank of Sydney charge a discharge fee of $300, which covers the cost for removing the mortgage that has been registered on the title of your property.
• Bank of Sydney may also charge you a fixed-rate break cost if you refinance out of Expect More or sell your house before the fixed term ends. It can cost thousands of dollars, and the advantages of breaking the fixed loan won't always outweigh the disadvantages.
• Selling the property or refinance during the fixed rate term can trigger hefty fees for breaking a fixed rate contract, and fixed rate loans tend to have restrictions on making extra repayments. Before you lock your rate in, you need to be sure that a fixed rate home loan is suitable for your situation.
• There is upfront costs of $150 to apply for Expect More, with no ongoing account keeping fees.

Borrowing Limits

• An LVR of 90% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
• An LVR of 95% is a high risk, whereas an LVR of 80% or less is considered safe by most lenders. The majority of lenders will require you to pay Lenders Mortgage Insurance (LMI) if you borrow over 80% LVR.
• Bank of Sydney Expect More does not offer tier pricing for lower LVR. With Expect More, you can borrow upto $80% LVR.
• Interest only option for Bank of Sydney Expect More is not available at 90% LVR. Bank of Sydney will only consider interest only if your home loan is 80% or less of the property value.

Eligibility

• Interest only repayment option is not available with Bank of Sydney Expect More for buying next home.
• Interest only repayment option is not available with Bank of Sydney Expect More for refinance.